The human Behaviour in Relation to money is always dominated by fear, greed and hope. Candlestick analysis will help us to understand these changing psychological factors by showing us how buyers and sellers interact with each others.
1) It is considered as a visual representation of what is going on in the market.
2) By looking at candlesticks, we can get valuable information about the Open, High, Low, & Close of price, which will give us an idea about the price movement.
3) Candlesticks are flexible, they can be used alone or in combination with Technical Analysis tools such as the Moving averages, Elliot waves, Support & Resistance areas, Trend lines, and momentum oscillators etc.
4) Candlesticks are used by most professional traders, banks, and hedge funds, these guys trade million of dollars everyday, they can move market whenever they want.
5) Candlesticks shows their real foot prints on charts. We can always see price action that what has been done and what is now going on in market.
6) Using Candlestick patterns will help you understand that what Big players are doing, and will show you when to Enter, when to Exit, and When to Stay Away from the Market.