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Candlesticks patterns provide very good visual cues that make reading
price action of a market easier.
Trading with Japanese Candle Charts allow speculators to better
comprehend market sentiment. Offering a greater depth of information
than traditional bar charts - where the high and low are emphasized
- candlesticks give emphasis to the relationship between close price
and open price. Traders who use candlesticks may more quickly identify
different types of price action that tend to predict reversals or
continuations in trends - one of the most difficult aspects of trading.
Furthermore, combined with other technical analysis tools, candlestick
pattern analysis can be a very powerful way to select entry and
exit points.
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