The Essentials 7 bined with candle charts. This is why candle charts replaced bar charts in the 1870s in Japan. Candle charts will likely replace bar charts in the Western world, as well, With bar charts, you recetye only bar chart sig- nals, With candle charts, you can use all Westem charting techniques and you have the insights given by candle charts. 8. d. Although candle signals provide strong visual warnings of a potential reversal, a trader should always consider whether a trade based on a candle signal offers an attractive risk/reward aspect. A classic candle sig- nal does not equal a good trade. The decision to place a trade should be contingent on risk/reward analysis. As the Japanese proverb states, Yelgh the situation, then move," or in the case of a poor risk/teward, “Do not move.” Another important market timing aspect in determining a.candle line or pattern ts confirming another technical signal, such as a moving average or 50% retracement. Such an occurrence improves the chances of a market tum. Although intraday traders may look at minute candle charts, in my opinion, one need not look at these before placing a trade (unless you are trading using 5-minute charts)