The Simplicity of Japanese Candlesticks
February 27, 2008 on 8:16 am | By admin | In MiscellaneousThere must be an infinite number of approaches to analysis of the stock market. Some investors even resort to astrology. Most observers of the stock market use a form of fundamental analysis, overlaid with an analytical approach based on the rises and falls in stock prices. An old, but new again, form of analysis focuses on the Japanese Candlesticks form of price presentation, which reveals in visual form the underlying psychology of the participants. The candlesticks are not mysterious at all; rather, they are a simple but visually effective method of showing stock prices in a way which the eye instantly perceives and the brain understands. They are easy to learn and easy to apply. Everyone should take the time and make the effort to learn about them and how they work. They are especially valuable in calling major reversals.