Which Candlestick Chart Layouts Are Best for Stock Trading? - Candlestick Patterns Explained by TechniTrader®

List of 5 for Beginners Includes Use White Background

If you are a beginner or novice trader with less than 2 years of trading experience, Candlestick Charts can help speed up the process of finding the best stocks to trade. Candlestick Charts are the easiest of all the charting formats to learn, as they provide more information in a graphical way that anyone can learn.

Here is a list of 5 Tips to help you use Candlestick Chart Layouts that are best for stock trading. These tips make it much easier to find stocks to trade for consistent success:

Start your analysis by making sure your chart layout uses a white background with black and white candlesticks. Everyone has learned to read using white paper or a white computer screen background with black text. Your eyes have been trained to read black print on white paper rapidly and accurately. Trying to read a chart that has a black background with red and green candlesticks puts you right back at square one as if you are starting your Technical Analysis training as a first-grader again. This is HUGE. Our experience has proven that using a white background with black and white candlesticks speeds up the analysis, reduces eye strain, and improves the analysis dramatically. Sure, black backgrounds may look “cool”, but if you want to be consistently successful, switch to what your eyes have already been trained to do.
The Aspect Ratio of the chart is critical. This is the layout and size of the chart horizontally and vertically. If the ratio is off, that will distort the candlesticks, and you will find it harder to read the charts and their patterns accurately. The chart aspect ratio should follow the Golden Rectangle Aspect Ratio rules for size.
Daily charts are usually the first chart time period you should be studying regardless of your Trading Style. However, that is not where your analysis should stop. Checking intraday, 3-day, and weekly view charts is also important for most Trading Styles.

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Trade Wisely,

Martha Stokes CMT

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses