One of the first candle patterns that I teach my stock option trading clients is the Hammer. This candle pattern can be used for downtrends as a reversal of direction to an uptrend. Please check out my short video below where I give examples of what a hammer is and when it is giving a significant signal because it combines with Western technicals.
I tried to be objective about letting you determine which type of chart type you preferred. I hope you really did work with all three types. Now I can tell you as I tell all my stock option trading coach clients, the majority of the time I use candle charts.
Candle charts go way back in history from trading in Japan. Candles are frequently referred to as eastern signals.
One of the reasons I use candle charts is that candles often give early signs of potential trend reversals. When a candle pattern agrees with a western technical sign such as a strong resistance or support area, or a crossing of the MACD, or a crossing of a significant SMA (simple moving average) or EMA (exponential moving average), then I really pay attention!
My next post will include a video showing various reversals of a downward trend. We will look at both candle patterns and western technicals.