Candlestick charts are great for improving your market timing and improve your risk reward ratio.
Candlestick charting has a valuable aspect. It is visually easy to see patterns and the overall trend in the charts. This is an essential part of any technical trader to master.
In today's trading environment, you need to have a clear plan and rules on how you will trade profitably. Fortunately, the graphic picture that candlestick charting express makes it easy to take profitable actions.
One of the candlestick charts' most significant advantages is that candlesticks can be used in all time frames and when trading stocks, futures, forex, and every other market with an open, close, high, and low.
The advantage of candlestick charts is that we can see the change in market sentiment and crowd psychology.
A big green candlestick after a small red candlestick shows that the bulls took control.
A big red candlestick after a small green candlestick shows that the bears took control.
By analyzing the number and average size of green to red candlesticks, we have a simple way to define the trend with a glance at our charts (one big advantage with a candlestick chart compared to a line chart.)
So if we have more green candles than red candles and the average size if larger for green candles.
We can define the trend as an uptrend: