Egg 3 - Candlesticks
As mentioned elsewhere on the website, I am a Big believer in using Candlesticks, I trust the Candlesticks, and, when I don't follow the Candlestick signals or patterns, I usually have a losing trade and have to work five times harder to re-coop the losses.(that's recoup for humans).
Trading with Candlesticks is not rocket science according to Steve Bigalow of the CandleStickForum.com and Steve is the King of Candlesticks in Hawks' opinion. Kudos to Steve for his generosity in teaching others.
Pecking around and jumping from one idea or plan to another results in inconsistency. Rick Saddler teaches this in his Live Trading Room - HitandRunCandleSticks.com to "Be Consistent in your trading!" An Excellent rule to add to your trading plan.
Trading always revolves around the price of a stock. The price goes up and down in any given trading day. Without price changes there is no buy and no sell, and no reason to have traders. It is after all, a market. A Stock Market!
Candlesticks tell you what the buyers and sellers are doing at any given moment in time and in any timeframe - 1 minute, 5 minute, 60 min, Daily, Weekly, etc.
Visualize what a Candlestick looks like - a tall or short rectangle.
If you start at the bottom of the candle and move up to the top, that is a Positive movement. Conversely, if you start at the top and move down, that is a Negative movement. On most charting programs a Green candle means the price is going UP while a Red candle means the price is going down. If the candle goes up, the buyers are buying and if the candle goes down, the sellers are selling. It's that simple.
If there is a horizontal line, or a small box, in the middle of the candlestick then the buyers and sellers can't make up their mind in which direction to go - UP or Down. This is called a Doji candle which is a Japanese term and more details can be found on the other websites mentioned earlier.
Candlestick Signals and Patterns are another learning curve to master. Visit the other websites to learn more, but know that the Hawk focuses on the J-Hook, Morning Star, Evening Star, Rounded Bottom, Cradle Pattern, Doji, Belt-Hold, and Scoop Pattern.
Practice every day viewing charts, visually looking for the Candlestick Signals or Patterns of Your Choice. Focus only on these to shorten your learning curve. Or, just pick three or four to start with. If you don't like the signals or patterns, then follow your own. Be consistent. Buy and Sell stocks with play money for a few months. When you feel confident, then play some more.
Eventually you will bite the bullet and buy a real stock with Real money. Be Alert, remember your Goals and Trading Plan, and What?