CANDLESTICKS ANTICIPATE, INDICATORS FOLLOW, TRENDLINES CONFIRM
I call candlesticks an “anticipatory” indicator. You haven’t come across this wording before, since it is my own terminology. An anticipatory indicator gives a signal in advance of much other market action — in other words it is a leading indicator of market activity. Momentum indicators such as CCI or stochastics are also anticipatory since usually momentum precedes price. Typically, however, even rapidly moving momentum indicators such as CCI lag the candle signal by a day or two. When you receive a candle signal followed by a momentum signal such as stochastics which communicates the same message, it is likely that in combination they are accurately predicting what will happen with a stock.