​Candlesticks

We had one person who left the our weekly free chat in a huff the other day. Why? Because he couldn't stand the truth. He couldn't believe that it was possible to trade without candlesticks, and/or a lot of fundamental information. He said I was not sincere.

So, what can a person do? I try very hard to tell it like it is. I have nothing against candlesticks. If they help you, use them. But they make for a very poor indicator. This particular fellow couldn't believe the stock market would go down because he had a "hammer" on his long-term chart that said it had to go up. When I protested with "but prices are falling," he became insulted.

Just look what has happened to the Japanese traders who use candlesticks. If they are looking at the same hammer, they are losing their collective rear ends. In all the years since the introduction of candlesticks, I have never seen any value in them other than for some people they make more clear the relationship between the open and the close. Apart from that, I don't see any advantage other than if they help you, use them.

Sign up for our FREE weekly Chart Scan newsletter.

Master Trader Joe Ross wants you to learn trading and he created products to do just that, teach you how to trade. Click here to find which ones best fit your trading style. Learn the art of trading Joe Ross' way.

Written in 2004 by Joe Ross, we are adding articles that do not show on our website.