Does candlestick charting really work?
On One Hand: Candle Stick Charting Works in Short Term AnalysisCandlestick charting works best for short term stock market analysis. The charting is based on relationships between opening, high, low and closing prices and thus highlights intra-day stock movements. It helps traders gauge the emotions surrounding a stock and predict the direction the stock is headed accordingly.On the Other: Individual Investors Should Think Long TermCandlestick charting is not a good predictor of long term stock behavior. Most individual investors should invest for the long term and should not be looking for short term trends on which to base stock trades. Candlestick charting is more for speculators and hedge fund managers geared toward short term investments.Bottom LineCandlestick charting works for short term stock analysis. Most investors should be making long term investments in the stock market, not looking for short term trends.
