Playing the stock market becomes a much easier process when knowing which direction the markets are moving. The information incorporated in the Candlestick signals makes analyzing the market direction very easy. When playing the stock market, profits expand dramatically when being positioned correctly in the trends.

Understanding what the Candlestick signals demonstrate when in the overbought or oversold conditions allows the Candlestick investor to greatly reduce market exposure risk. Most investors playing the stock market want to be long all the time. The advantage of the Candlestick signals allows an investor to analyze whether to be long, short, or have positions in both directions. Having the ability to analyze the signals correctly makes analyzing the market direction very easy.

The past few weeks, it has been recommended to be positioned towards the ‘long' side, although not aggressively. The analysis of the market indicated that a pullback was in progress but not a very convincing pullback. Under these conditions, specific sectors/stocks produce some very good profits on the long side. Had the Candlestick signals illustrated more severe selling possibilities, a different strategy would have been put in place. This summer, usually the slow time of year for trading, has produced some significant gains while playing the stock market.

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Market Direction - As can be seen in the Dow chart, the decline over the past month and a half has been very slow and calculated. Numerous indecisive trading days revealed that there was no great urgency to take money out of the markets. With that analysis, putting investment funds into the strong sectors was not going to be influenced greatly by severe negative market sentiment. A large number of stocks were showing buy signals once they came back and tested the 50 day moving averages. This provided on another indication of the presence of buyers in the market.

Over the past few days, the Dow has shown some good bottoming signals as the stochastics were turning up out of the oversold condition. Monday formed a Bullish Engulfing signal. Although Tuesday sold off again, it produced a significant bottoming signal. Note how the lows of both Monday and Tuesday were exactly the same. This created a Tweezer Bottom. A Tweezer Bottom has significance in that it illustrates a level where the buyers step in more than once. Wednesday's trading also produced a tail to the downside that almost tested the same a low level. The strong close on Wednesday formed a second Bullish Engulfing signal in the last three days. This would be a strong indication that the buyers have bottomed out the markets.

The NASDAQ formed a Bullish Engulfing signal right at the 50 day moving average. The next day it formed a Doji/Hammer signal followed by a bullish candle that breached the 50 day moving average. The stochastics have now turned back up. All this occurred when the news reports were telling how terrible the oil shortage may be. Continue to buy on strength.

Option Trades - The Candlestick signal analysis makes for some very successful option trades. Being able to analyze what the signals are doing, in respect to creating a high profit pattern, allows for the implementation of high profit option trading strategies.

As illustrated in the Alpharma, Inc. chart, the Candlestick signals indicated when the initial pullback, after a breakout, was over. A breakout signal is usually going to be followed by some profit-taking. Being able to identify when that profit-taking is finished allows for the participation of a high probability strong move to the upside.

The bullish Spinning Top/Harami indicated when the selling had stopped. The following Bullish Engulfing signal revealed when the buying was starting again. Was a big move anticipated? A breakout through a moving average usually indicates the presence of new strong buying. The gap-up through the moving averages reveals that a new dynamic has come into the stock price. The strength of that signal suggested that there would be further buying.

Purchasing the September 20 calls, when the Bullish Engulfing signal appeared, made for a high probability positive trade situation. The September 20 calls were purchased for $1.20 on the confirmation that the buying had started again, the Bullish Engulfing signal. Being able to recognize the potential for a high profit trade produces high profit option trades.

Private Training Sessions – The analysis of what one market can do to another is easily evaluated when using Candlestick signals. The process for projecting market direction becomes relatively easy when a Candlestick investor can utilize the signals to evaluate all the markets that might be affecting the stock market. The better one can analyze the market direction, the much greater the profit potential.

Steve Bigalow spends a good amount of time during his two-day private training sessions demonstrating how to use the Candlestick signals to accurately evaluate market trends. Adding this information to the identification of high profit signal patterns allows an investor to control the profitability of their portfolio for the rest of their investment career. Don't miss the opportunity to gain some valuable knowledge first hand. The Candlestick signals produce an immense amount of analytical information. Whether trading stocks, commodities, Forex, or tulip bulbs, Candlestick analysis will dramatically improve your profitability. This information is taught in a very easy-to-understand manner.

The September training session appears to be full. The next one should be scheduled for mid-October.

If you want to become the master of your investment future, this is an opportunity you should not pass up. If you would like more information, please contact us by email. To contact us by phone, please dial our toll free number: 1-866-251-4015. Contact us now, spaces are filling up fast.

Monday Night 'Members Only' Chat Session – Due to the Labor Day holiday on September 5th, there will be no 'Members Only' chat session scheduled for that evening. The Monday night chats for members will resume on September 12th. The topic for the September 12th session will be revealed in next week's newsletter. Members, have a Happy Labor Day and we'll see you Monday night, September 12th, at 8:00 p.m. Eastern time.

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Thursday Night Open Chat Session - Everyone is invited to attend our Thursday night chat sessions. Please tell all of your friends! The next Open Stock Chat will be scheduled for Thursday night, September 1st, at 8:00 p.m. Eastern time.

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The Major Signals Educational Package - NOW ON DVD!
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You should never be put in a position where you do not understand why trades are being made for your account. Whether those positions are being put on in your managed account, or a hedge fund, or your own personal trading, you should have a full understanding of whether those funds are being put in the right positions at the right time. The Candlestick signals applied with Candlestick analysis will become the education process for understanding how to maximize your potential returns in your own trading or being able to analyze whether a money manager has any concept of correctly timing the markets.

Good Investing!

- The Candlestick Forum Staff