The 21st Century, Thanks To The Computer
Now let’s talk about today. Because of the power and wealth of knowledge that exists in the Internet, it has become the source of an incredible amount of data about everything, especially the stock market. Personal computers have become powerful tools, able to screen the results of stocks and analyze mountains of data in no time at all. Like bell bottom jeans, it’s great when the “good ole days” gave way to advanced abilities and someone actually came up with electronic technical analysis tools?

Before, it simply wasn’t possible to do stock screening of more than a few companies without a flock of analysts. Trying to find potential acquisitions out of a pool of more than two or three companies was overwhelming. Today, it is possible to compare many companies and to screen their stocks quite accurately. Today, any investor can access powerful stock market trading tools that did not exist before. Now, these tools for analyzing stock market indexes exist on the Internet and many of them are free. As you might guess, some of the top-end tools are quite expensive but for most people, the research they want and need is free or available for a modest subscription. It’s time to throw away the Rubik’s Cube and step into the 21st Century.

Finding Needles In The Haystack
These days, one of the most basic research tools available is the stock screening tool. Stock screening tools are provided in programs that can do in seconds what you can’t do even with hours of research by hand. The best part is there are many stock screening tools on the Internet that are free for you to use. While some of the high-quality ones are included as part of subscription packages for research sites, there are plenty that you can find free of charge. What are you actually doing? The concept isn’t difficult. Find stocks that meet certain search parameters instead of investing in a stock because it looks good at the moment. Sounds like I’m about to start a lecture on stock trading plans, doesn’t it? Put together a stock portfolio based on strong research and come up with ways to measure its performance afterwards.

Stock screening tools give you the ability to define multiple variables such as stock sector, market cap, sales, dividends, and more. As you include more variables, your screen becomes more complex and you will receive fewer matches. After you enter your variables, the stock screening tool reviews all the companies listed on the stock market and outputs those that meet your parameters. This is your list of prospects. Have too many? Simply run the stock screening tool again with more variables to reduce the number of hits. Some of the better stock screening tools will let you run more tests on the results you just received, while many of the lower-end programs leave you to set up your screen and run it again. Even if you are left to run your test over, you have saved a tremendous amount of time and hopefully you have just identified your next hot stock.

Conclusion
What happened to the 8 Track? How about the Beta VCR? These items evolved into new products thanks to technology. Thanks to the Internet and stock screening tools, even a beginner investing in the stock market can become something different too....he or she can become someone who makes money investing in stock. While you’re at it, get rid of your pet rock too!

Market Direction: Candlestick analysis becomes very easy when the 'eye' recognizes the individual signals. Knowing what each individual signal represents, as far as what is occurring in investor sentiment, makes the next visual analysis all that much easier. Being able to identify the change of investor sentiment from individual signals makes recognizing high profit patterns very easy. The benefit of utilizing candlestick signals and patterns is the expectations/anticipation of what should occur next in a price move. This knowledge creates a huge advantage for investors.

Price patterns represent reoccurring investor sentiment. The identification of a candlestick signal alerts an investor to a possible price move. Visually recognizing that the next price move may also complete a price pattern creates a trading format that dramatically improves an investor's probabilities. Price patterns have predictable results. Those results can be quickly verified or non-verified based upon individual candlestick formations.

The result of a price patterns can easily be seen in BPHX. The Hammer signal forming at the recent bottom created the possibility of a double bottom. The new uptrend, from that signal, produced a rounding bottom or Fry pan bottom pattern potential. A Fry pan bottom pattern has certain expectations once prices move back up to the high's at the beginning of the pattern. If the trade is going to remain successful, what is anticipated once the price moves back near the recent high? A break out or a large bullish candle, indicating that the recent high was not going to act as resistance. This knowledge comes from knowing what the results should be for a Fry pan bottom pattern.

BPHX

Applying candlestick analysis to pattern setups produces two advantages. First it produces a trading format for when to be in or out of a trade. Next, it allows an investor to identify trades that could produce much bigger profit results than a non-pattern price move. Can these patterns be scanned? Not very well! But the ability to visually recognize the patterns becomes very simple. Once you understand why a pattern works as it should, the eyes will easily recognize what the previous trading has done.

DRYS

Candlestick analysis is not merely identifying candlestick reversal signals. Mr. Bigalow has spent over 20 years identifying and exploiting price patterns that work well with a candlestick signals. Successful investing does not require weeks, months, or years of learning how to analyze a company's financial background. Successful investing is learning how to identify what the smart money is doing at the proper times of a price trend, buying at the bottom and selling at the top. Mr. Bigalow offers private trading sessions that cuts through all the Wall Street rhetoric. His two day private training sessions walks an investor through a logical analytical process that utilizes candlestick signals. If you are tired of the relatively unsuccessful results produced by the so-called Wall Street professionals, take a weekend to learn the commonsense principles incorporated into candlestick analysis. This is not a difficult process. Keep in mind, candlestick analysis was developed centuries ago by Japanese Rice traders, not Japanese scientists.

The information applied to candlestick analysis was the successful results that Rice traders identified for their own profitable trading. Learn how to use this information properly and you will be able to control your portfolio performance for the rest of your life. This can be done without having to depend on Wall Street's opinions or newly formulated computer programs. The two-day trading instructions, provided by Mr. Bigalow, create powerful investment insights for the beginning investor as well as the sophisticated trader. The probabilities are already built into candlestick signals. When you learn how to use those probabilities correctly, your perception of investing will change dramatically. Click here for more information about the private training sessions.

Market direction - The Dow continues to move consistently toward the 50 day moving average ever since the dramatic Morning Star signal formed on the 200 day moving average. The NASDAQ also shows all indications of testing the 50 day moving average over the next few days. Although both the Dow and the NASDAQ traded off today, there was nothing indicating any change of the current trend.  Continue to hold long positions.

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Good investing,

The Candlestick Forum Team