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Technical Analysis for Beginners: Candles and Patterns for Stock Market Investing - The Motley Fool

Many people assume technical analysis is only for traders, but can technical analysis provide long-term investors an edge for outperformance?

I am a long-term investor. With that said, I have always taught the importance of technical analysis for investors. Fundamental analysis is most important, but technical analysis can be leveraged for better entry and exit points. When using dollar-cost averaging, technical analysis can provide probabilities for levels of support and buying opportunities.

I have been investing and trading for over 20 years, and I have found that technicals help provide me an excellent cost basis for my long-term investments. Of course, improved entry points and cost basis will greatly improve long-term performance, and with compounding, it can make a significant impact on net worth. I believe technical analysis is a key to outperformance and financial freedom, and it's sadly overlooked by many long-term investors. With that said, this information will be helpful to both traders and investors alike, so please keep reading. 

In the below video, I will teach you the basics of candlesticks, candlestick patterns, and chart patterns. Topics include:

  • Japanese candlesticks
  • Single candlestick patterns 
  • Double candlestick patterns
  • Triple candlestick patterns
  • Downside reversal candlestick patterns
  • Upside reversal candlestick patterns
  • Reversal chart patterns
  • Continuation chart patterns
  • Bilateral chart patterns
  • And much more

One of my largest holdings is the Invesco Nasdaq 100 QQQ Trust (NASDAQ:QQQ), and I use this ETF in several examples throughout the video. Please watch and subscribe. 

*Stock prices used in the below video were during the trading day of Dec. 23, 2021. The video was published on Dec. 23, 2021.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Eric Cuka owns Invesco QQQ Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.  Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.