I get this question a lot:
can I use the candlestick patterns and the candlestick logic to analyze other financial markets?
Yes, you can.
Here we have an example on the stock market, the chart is alphabet, that is Google. The time frame
is 4 hour and the first thing I can notice is that there is a down channel here that I'm going to highlight
like this.
Can you spot any candlestick pattern that suggests a trade on this channel?
There is a very strong bearish engulfing pattern right at the top of the down channel.
This is a very good signal to enter a short position and you can see that the action that follows confirms
our idea.
We have a strong bearish candle that confirms that sellers are strong
and then another red candle, with buyers that start to appear,
that's why we have this lower shadow.
So can you apply the concepts in this course to other financial markets, like the stock market for
example?
Yes, you can, but make sure to study the main features of the market that you're going to trade.
For example, the stock market has much more gaps compared to the forex market.
You can see an important gap here and others along the way.
So you can use the candlesticks to analyze any other financial market, but make sure that you understand
the market that you are trading.