The Best Candlestick Chart Patterns for Trading

Candlestick Buy Entry Signals

The goal for your trading should be to learn how to find the best stocks to trade quickly and easily. Often times Traders spend more time trying to figure out which stock they should choose to trade, and waste most of their day looking at stock charts.

Candlestick Buy Signals are the key element and is often missing in stock market education. You can learn the basics of Candlestick Charts Patterns at the TechniTrader Learning Center which is our resource library of training for Traders.

What differentiates a Buy Signal from a Reversal or Continuation Candlestick Pattern is that the true BUY SIGNAL is a specific group of candles, that have formed in a chart PRIOR to that stock starting a run and those are stocks with the best Candlestick Chart Patterns for Trading.

Too often traders use Candlestick Reversal Patterns, Continuation Patterns, MACD, or Stochastic crossovers as entry signals. All of these methods put you into the stock late losing profits, and increasing your risk of a whipsaw trade especially when the Stock Market is in a choppy sideways to volatile Market Condition.

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By learning true Buy Entry Signals which are the best Candlestick Chart Patterns for Trading, you can increase your profitability to 75% or greater. Now that probably may sounds far-fetched to those of you who are trading Reversal Patterns, Continuation Patterns, MACD, or other crossover signals and have come to accept that the best you can do is about 50%.

The reality is that by making minor changes to when you enter a stock using Candlestick Buy Signals, and by using Indicators NOT as an entry but as a confirmation of underlying energy and strength, you can achieve a significantly higher percentage of successful highly profitable trades.

The chart example below has a strong Buy Entry Signal Candle Pattern which is one of the best Candlestick Chart Patterns for Trading. 

chart example with strong buy entry signal candle pattern - technitrader

It is one of many entry signals that are taught exclusively at TechniTrader. This is an extremely reliable Beginning Trader Candlestick Chart Pattern which provides low risk and high profit potential.

The proper indicators are needed to confirm this Buy Entry Signal as having sufficient underlying HIDDEN buying activity by giant lot Buy Side Institutions that at some point it will trigger the High Frequency Trader HFT computer algorithms to run or gap this stock up. 

In the top indicator window below price, you can see this indicator reveals giant Buy Side Institutions using Dark Pools to buy in large lots incrementally. Their buying is hidden off the exchanges, but this indicator confirmation makes this stock Buy Entry Signal one of the best Candlestick Chart Patterns for Trading. 

This is not a Buy Entry Signal taught in the standard Candlestick Books. It is the five candlestick group pattern on this stock chart that is the differentiator, with the size and placement of those five candles making this a strong Buy Entry Signal.

As you can see in the bottom chart window, MACD has no signal at all. It is floating on the downside since it can only crossover AFTER price has moved, and because it is a momentum price indicator. In addition it has no ability to track large lot accumulation by the giant Buy Side Institutions.

MACD finally crosses over, but only after the stock has gapped up. This is a High Frequency Trading HFT gap, and the run is finished at this point. Watch the TechniTrader MACD indicator for Stock Trading Webinar which shows you how to improve it for the current Stock Market.

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 The second chart example below shows what happened after the strong Buy Entry Signal. 

full chart example showing what happened after the strong buy entry signal - technitrader

The points gained were approximately 3.00 to 3.25 points, depending upon your exit price. So a two day hold of 100 shares is $300.00, for 500 shares it is $1500.00, and for 1000 shares by an experienced trader it is a $3000.00 profit in just a 2 day time period. 

Summary

Most traders only dream about such returns, but TechniTrader Students learn how to have these types of successful trades on a regular basis.

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Trade Wisely,
Martha Stokes CMT
TechniTrader technical analysis using TC2000 charts, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDS with every course.

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Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only.