Gary Wagner is a trader in the futures market who believes and relies heavily on candlestick analysis in trading. For Wagner, candlesticks are mathematical expressions of market sentiment psychology. He uses the candlestick combination he calls 'east indicators' with the technical indicators he calls 'western style equipment' for daily trading. He has been involved for several years trading in the commodity market before seriously studying candlesticks to anticipate market movements. "At first I ignored this indicator, but gradually I was interested. If you want to know market sentiment, watch the candles," he said.
Inspired by Candlesticks
After graduating from the academy, Wagner worked for a broker futures, and around that year (1989-1990) the futures market had begun to use candlesticks to display price movements. "When I began to be interested, I did not really understand what this indicator was created for. The age of the candlestick was quite old and still being used. I was curious and began to do research on various materials at that time," he recalled. Wagner then found a book called The Japanese Chart of Charts created by Seiki Shimizu, and he read it repeatedly. "This book should be read by US chartists. I have read it more than once and is very helpful in explaining the ideas contained in the candlestick," he continued.
"After understanding how to read candlesticks, my trading results have made a lot of progress, started to be able to profit consistently, and of course my clients also gain a lot of profits," he explained.
"For chartists or western technicians, especially the United States, they only use candlesticks. The probability is fifty-fifty because they emphasize the closing price over time. They also often use moving averages, stochastics and draw trend lines. information obtained from candlesticks, such as the relationship between the opening price (open price) and closing price for a period of time. The dynamics of price movements reflected in the candlestick can also indicate a bullish or bearish direction, "said Gary Wagner.
Not only writing books, but Wagner also made Candlestick Forecaster software which was originally used for trading purposes for himself and his clients. "I collected all the trading methods and techniques with the candlestick that I have used, and I arranged them one by one in the form of software to help choose which technique is the most appropriate to use," he said.
Although it seems very focused on candlestick movements, Gary Wagner does not ignore fundamental factors. "Fundamentals do determine the direction of market trends, but can be filtered mathematically. When I am not burdened by a variety of fundamental information, I can see actual market sentiment through candlesticks. But still, fundamental factors cannot be ignored," he added. Besides trading for himself and his clients, Gary Wagner also actively writes books and speaks at various trading seminars, especially those related to candlestick charting.
Lessons for Beginner Traders
What advice for beginner traders? "Beginner traders tend to be day traders, but that's normal. If you are a beginner trader, don't be lazy to learn to trade, if necessary take any course or education program to get adequate knowledge. If you jump into the real market it's like throwing yourself to a bunch of sharks. Do you know how big players or big boys play? They are very greedy. You need really sophisticated protection. Remember, the market is very fast changing. Your strength and stamina are very important if you want to survive, "suggested Gary Wagner.
Traders and investors who have succeeded in their careers mostly dedicate their knowledge and time to developing the world of trading and investment such as establishing investment companies, becoming consultants, commentators on various investment and business media, developing trading software, writing books, and so on. We can take positive benefits from the story of the career journey and Gary Wagner's view of the importance of candlesticks and learning trading for beginners.