In the forthcoming US presidential election it will be interesting to see which candidate’s economic policy will take on which number of AUD/USD levels. In the charts above, I have outlined five key points that I believe all the candidates will have to deal with.
Chart One: Historical Candlestick Chart to Assess Historical Candlestick Measurements
Candlestick charts look at historical candlestick data, in the format of a low, high, and a break of a certain level. The data is processed and then charts are made to analyze the details of the pattern. One of the most popular candlestick chart tools is “Coke’s Law”, a formula which is developed by Coke and later used by Wolfram Alpha.
Candlestick chart tools that use Coke’s law can take a number of different approaches. If you can apply a real world index as the choice index, then all of the candlestick lines drawn on the chart can be linked. This is referred to as a “pattern”, but can also be thought of as a trend.
Another type of candlestick chart tools is based on a Fibonacci chart. This is the most popular type of trend patterns in the Dow Jones Industrial Average chart and can provide a very insightful read. The more realistic the rise and fall of the stocks, the more often the rising point can be plotted on the chart.
The next candlestick chart tools look at the occurrence of “ups”, “down”neutral” points within the pattern. Candlestick charters can tell when the pattern stops and starts to make a large swing in the opposite direction.
Candlestick chart tools can be used to test the strength of a stock. Do these patterns hold for the period of time it takes to buy and sell stocks? If the answer is “no”, then the pattern is not attractive to the buying and selling period.
Candlestick chart tools can also be used to test the strength of a trend. Is the strength in the day to day period a signal of strength, or is it a “trough” signal which will eventually fade and stop the move in the opposite direction? “Liquidity” also plays a role in the strength of a stock’s trend.
The final ingredient that is seen in the five points below, is the idea of “blitzing” a stock and making large purchases and large sales in a period of a few weeks, months, or maybe even years. A stock could potentially be on a close down pattern at one point in time, but now is on the opposite end of the pattern.
Candlestick chart tools are an extremely useful tool to have. Candlestick charts can be used to find the strength in the stock market, particularly when looking for a peak or top in the market.
Candlestick chart tools are a valuable tool for trading the stock market. Use candlestick chart tools for today’s market.