Candlestick charts represent the data in any timeframe you specify: for example 1-minute, 3-minute, 5-minute charts for day traders, or daily, monthly, annual charts, or other intervals.

To start trading online, you need:

1. Trading capital
   Without the capital there is no investing. Long-term investors usually commit considerable funds compared to short-term traders, who practice frequent buying and selling of stocks.
    
2. High-speed Internet
   For day traders in particular high-speed Internet is a must because they receive the streaming data which is being constantly updated in real time. Short-term trading is simply not possible without the adequate Internet connection.
    
3. Online broker
   You facilitate the buying and selling of shares through an online broker.

Candlestick chart reading tells you whether bulls or bears are in control, but keep in mind that no technique is right 100% of the time.

To determine the potency of the reversal, ask yourself "How does the current price affect the traders who entered the trade in the prior bar?"

If the short-sellers are caught in the losing position, it drives the prices up. When traders who went long find themselves in a losing position, it drives the prices up.

Candlestick analysis gives results because it reflects the psychology of bulls and bears.

Examine the examples in the following video for a number of potent bar combinations that give you a high probability of a trend reversal.

Breakout trading can be very lucrative, especially after long periods of stock consolidation, when the accumulated energy for a strong directional movement is at its greatest.

However, be aware - a breakout can fail, and a subsequent movement in the opposite direction can wipe out your position. Be on the lookout for the potent breakout failure patterns.

When the bars are extending in the range and following the direction of an uptrend, most amaters take it as a bullish signal - but contrary to the popular belief, it is a powerful bearish indicator.

In fact, prices contracting in range in an uptrend present a bullish sign.

Pivot analysis is a great aid to your candlestick chart reading. Pivots represent a shift in control between bulls and bears.

• When a pivot high is formed, it means that the selling has increased.
   
• When a pivod low is formed, buying has increased.

"Trend is your friend" is an old adage, except at the end when it bends.

Quite simply, higher highs and higher lows means and uptrend; lower highs and lower lows means a downtrend. Trading against the trend is a dangerous proposition because it is easy to be swept by the tide. Always trade with the trend.

After watching all the information-rich videos on this page you must be looking forward to a break :) ... but now is the moment to take a candlestick chart reading quiz to check and reinforce your newly gained knowledge.

Remember, you can always go back and review how to read candlestick charts and candlestick chart patterns.