Day trading poses a huge opportunity for everyone who can do with some extra money in their bank account at the end of the month.
I discovered day trading after going through a tough time in wanting to contribute more as a wife and mother.
Today, I am proud of myself for investing time into learning how to read candlestick chart for day trading.
Something that has helped me turn a few hundred dollars into a few thousand dollars already.
Trading currencies, stocks, or anything else is a simpler process than a lot of people makes these opportunities out to be.
But for a newbie who is only dipping their toes into day trading, everything can quickly start to seem overwhelming.
I started day trading almost a year ago and has since learned a lot of strategies and tips that have helped me succeed.
I can proudly say now that I am no longer struggling to make ends meet.
I can stay at home with boy, Blake, take really good care of him, and only spend a couple of hours each day putting through a few trades.
Here, you will learn more about the different strategies that can be used in order to predict future trends in a specific trade that you wish to make.
And how you can use the candlestick chart method to make more accurate decisions in terms of the trades that you decide to initiate.
Once you learn how to read candlestick chart for day trading, you’ll find that things become much easier and you run a lower risk of losing all of your investment.
Different Strategies For Predicting Trends In Day Trading
When you enter the world of trading, you will often find that it is a good idea to follow the advice of someone who has years of experience behind them already.
The experts in the day trading industry tend to develop their own unique strategies for securing profit with every trade that they make.
With this in mind, it is always a good idea to start out by taking a look at the different types of strategies that are available for you to utilise in order to predict what type of trades are best to make at any specific moment in time.
When it comes to day trading, I prefer a two-step approach in order to make more successful trades and to limit your losses:
- First, you need to know how to read candlestick chart for day trading. Of all the methods that are available, I find that the candlestick chart strategy gives you the best overview and helps you predict with more accuracy.
- In addition to looking at a candlestick chart, you also have to do a thorough technical analysis to know whether a trend may suddenly increase or decline in the near future, such as within the next few hours.
How To Read A Candlestick Chart for Day Trading
With candlestick chart methods being the most popular amongst all of the methods that traders tend to utilise in order to predict future trends in particular trade varieties, I thought it would be a good idea to take a quick look at how you should read these charts.
First of all, a candlestick chart refers to a chart that provides data on a specific trade variety over a period of time that you can usually select.
Each candlestick also provides specific data on a timeframe that you choose.
This can include five-minute intervals, 30-minute intervals, or even 24-hour intervals if you choose.
During the timeframe, a candlestick will develop – once the time lapses, the candlestick will be developed, and the next one will start to form.
The reason why these are called candlesticks is that they represent a candle.
Each candlestick has a body and a tail. Let’s take a look at the different parts that make up each of these candlesticks:
- The body of the candlestick refers to the fat part that is usually coloured either green or red, depending on the way that trades go over the specified period of time.
- The tail, or wick of the candlestick, is the thin part that comes out the top of the fat body, as well as at the bottom.
There are four positions that are marked with a candlestick. These include:
- Open – this is the starting point of the candlestick’s body and represents the price at which trades in the specified time period were opened at.
- Close – this is the end point of the candlestick’s body and represents the price at which a trade closed at. In other words, the endpoint represents the last price at which a trade was made in the selected pair after the specified time interval has elapsed.
- High – This is the upper part of the candlestick’s tail or wick, and represents the highest price at which a trade was made during the time period that you have selected.
- Low – This is the end point of the candlestick’s tail that leads out from the bottom of the body, and represents the lowest price at which the pair was traded at during the time period of the candlestick.
In most cases, the candlesticks’ body will end up either red or green.
If the closing price of the trading pair during the specified time period is higher than the open price, then the body will be green.
If the opposite is true, and the closing price is lower than the open price, then the body will rather be red.
Learning Candlestick Chart Strategies For Better Day Trades
Once you understand how each candlestick is made and what each of the parts that make up this item on a chart means, it is time to start looking at some of the possible candlestick chart strategies that you can use in order to make accurate predictions and make trades with a higher rate of success.
There are different types of trends that you may notice when looking at a candlestick chart, and understanding each of these is important, as they will ultimately help you determine if the price is about to go up or down.
Some popular trends and strategies used when consulting a candlestick chart includes:
- Hammer candlestick
- Doji candlestick
- Bearish Engulfing candlestick
- Shooting Star candlestick
- Bullish Engulfing candlestick
- Hanging Man candlestick
How Trend Mystery Helped Me Out
After investing many hours into learning how to read candlestick chart for day trading, I discovered a program that really simplified things for me.
The Trend Mystery platform gives you access to an easy-to-use software that you install on your computer, along with the Meta Trader 4 platform, and then gives you signals so that you know when to buy or sell.
With Trend Mystery, I still read candlestick charts and take the experience I have built into account, but the software really makes things much easier for me.
Instead of going into a trade blindly, this software helps to provide me with an accurate overview of the past and present status of a specific trade that I would like to make and even gives me an opportunity to see the predictions for the near future of that trade.
What I found most convenient about the Trend Mystery platform would definitely be the alerts.
Once I installed the software and completed the initial configuration, I would get an alert every time the software detects an upcoming trade that could land me a large profit.
The alert would come as both email and push notification on my phone.
I would then simply sign into the MT4 platform, initiate the trade, and wait for Trend Mystery to tell me what I should get out of the trade.
To get access to the same software as I am using now to initiate better trades, Trend Mystery, you simply have to pay a $147 once-off fee.
There are no monthly charges and the developer behind this amazing platform gives all users access to free lifetime updates.
Plus, you get a full refund if you are not happy with the software within the first 30 days after you have made the purchase.
Conclusion On How To Read A Candlestick Chart
While day trading can be a fun and exciting opportunity to take on, giving you a challenge in life and letting you experience the thrill of an adrenaline boost every time you hit the trade button.
You need to know what you are doing before you make investments that could damage your credit record and your financial situation.
Learning how to read candlestick chart for day trading was truly one of the best things I could have done to improve my success in initiating trades.
While everything may seem difficult at first, once you start to understand the basics, you’ll be able to start predicting trends and making more successful trades in no time at all.