{"id":4794,"date":"2018-03-01T01:19:36","date_gmt":"2018-03-01T06:19:36","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=4794"},"modified":"2022-04-06T15:04:59","modified_gmt":"2022-04-06T19:04:59","slug":"candlestick-charts","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/candlestick-charts\/","title":{"rendered":"How To Use Candlestick Charts For Price Confirmation"},"content":{"rendered":"

\"\"Most of the articles on this trading blog focus on how to trade technical chart patterns such as the cup and handle.<\/h2>\n

We’ve also penned mini-lessons on various topics, such as trading psychology<\/a>, to help improve your swing trading success.<\/p>\n

But one thing we do not<\/em> often discuss on the Morpheus blog is candlestick charts<\/a>.<\/p>\n

Trading stocks exclusively based on\u00a0candlestick chart patterns may work for some momentum traders.<\/p>\n

However, too much focus only on candlesticks may cause traders\u00a0to miss the “big picture” of the overall trend.<\/p>\n

That’s why we combine reliable and longer-term chart patterns, such as stocks breaking out of a base<\/a>, with candlestick charts.<\/p>\n

The combination enables us to make sure we are trading in the right stocks, at the right time, while using candlesticks for price confirmation<\/strong> and\u00a0assisting in fine tuning our entries\/exits.<\/p>\n

We also rely heavily on moving averages<\/a> and volume for price confirmation.<\/p>\n

Below is an excellent video from SchoolOfTrade.com<\/a>\u00a0that shows you three ways candlestick charts can help improve your entries\/exits through price confirmation.<\/p>\n

NOTE: The examples presented in the video are commodity charts, but technical analysis works the same for stocks and ETFs.<\/em><\/p>\n