Price Movement Demonstration
So far we talked about individual candlesticks. This lesson will explain how candlesticks representing smaller periods of time are components of larger time-frame candlesticks representing larger periods of time. Certain types of candlesticks that occur consecutively form candlestick patterns. The identification and use of some of these patterns - candlestick analysis - can be a basis for profitable trading. Candlestick analysis, otherwise known as price action analysis, is more important and usefully predictive than indicators based on price.