Candlesticks Basics - 3

In part 3, the speaker mentions that it is important to look at the development of a candlestick pattern.  Candle development involves breaking a single candle down into its components.  For example, if you are looking at a daily chart, it is important to break this overall price movement down into its hourly component candles.  Understanding how the stock went to its final destination is very important in determining intraday support and resistance levels.  He illustrates his point by providing three examples. 

Furthermore, the speaker moves on to candle addition, which is the exact opposite process of candle development.  Candle addition aims to take the components and move up to the higher level chart to come to provide an aggregate picture of the intra-day moves.
Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...
Day Trading Simulator provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.