Candlestick Patterns: A Simple Tool To Improve Your Trading Success

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Although literally thousands of technical analysis strategies exist, we avidly believe in applying the K.I.S.S. principle to trading.

Why? The more complex the trading system, the greater the risk of human error while following the system.

That’s why the Morpheus stock trading strategy is mainly focused on buying base Breakouts and Pullbacks within uptrends.

However, there are easy ways to improve your existing trading strategy without complicating it.

Continue reading to find out why candlestick patterns are an excellent tool to improve your trading success in a simple way.

Candlestick Patterns For Confirmation

Like other types of stock charts, a candlestick chart displays the high, low, opening and closing prices of a stock for a specific time period.

However, candlestick patterns give valuable clues about the short-term momentum of a stock that are not as easily derived by traditional line or bar charts.

As such, candlestick chart patterns are excellent for confirming any type of pattern you normally trade.

When doing nightly scans to find breakout and pullback setups for the Wagner Daily stock pick service, we use candlestick charts to help confirm bullish or bearish patterns.

We do NOT use candlestick patterns as an actual trading strategy; rather, we use candlestick charts in a complimentary way to help improve our trading accuracy.

Specifically, candlestick patterns are great for confirming the timing of a new trade entry into a breakout or pullback chart pattern.

To see how candlestick patterns can improve your trading success by supplementing your existing trading strategy, check out the video below:

While watching this video, I highly recommend you keep a notebook handy because you may want to jot down some notes on the various candlestick patterns.

Since the video is 20 minutes long, I also suggest you kick back with your favorite coffee, tea, water, soda, beer, wine, or whiskey before getting started.

The robotic narration voice is a bit annoying, but the content is worth it (you can also turn off the audio and read the subtitles instead).

After watching the video, please drop us a comment below to let us know what you think.

We value your opinion, so let us know if you enjoy this type of content and would like to see more in the future.


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Deron Wagner

Deron Wagner is a professional trader, author of several ETF trading books, and the Founder of Morpheus Trading Group. Since 2002, he has been sharing his proven swing trading strategy with thousands of traders around the world. He has appeared on CNBC, ABC, and Yahoo! Finance Vision television networks, and is a frequent guest speaker at various global investing conferences.

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