Market Direction:  Candlestick signals and patterns are very effective for putting you into the right positions at the right time, producing the opportunity to participate in large price moves. But that is not the only benefit incorporated into candlestick analysis. On the same simple premise, identifying buying strength that could lead to big profit gains, that same strength provides an additional benefit the candlestick investors. Having a stock produce a big gain for the portfolio is what every investor hopes for. However, the fact that the candlestick signals produce visual evidence of buying strength leads to another investment element.

There are many trading days where the market conditions are very sluggish, the Dow and the NASDAQ trading down. But it is not unusual to experience a large percentage of positions in a portfolio moving positive. The percentage gains may not be magnificent but the result is very satisfactory. Utilizing the knowledge built into candlestick signals provides an advantage that most other trading platforms do not incorporate. The signals represent bullish or bearish strength in each particular trading entity/stock. Signals are created by the cumulative knowledge of everybody buying or selling that trading entity. Part of that knowledge is the evaluation the overall market trend. There will be other investment factors built into the investment decisions. More than likely, those factors well outweigh the general market direction considerations.

The basis for buying or selling a stock or commodity position is evidence of bullish sentiment or bearish sentiment. The power of a bullish signal will usually override what the market is doing in general. If the market is moving up, there will be stocks showing sell signals. If the market is moving down, there will be stocks showing bullish sentiment. If the market is moving sideways, the candlestick signals will identify which stocks/sectors are receiving bullish sentiment or bearish sentiment.

Candlestick analysis can provide the visual format for being in the right positions at the right time. That can equate to being in the big price move when it occurs or having the overall portfolio moving in the right direction despite the overall direction of the market. Utilizing the information built into candlestick signals and patterns are statistically proven to show positive results. This is not statistical information produced by computer generated statistics. This is evidenced by the fact the signals are still working today after being identified as high profit signals for the past few centuries. Do what the charts tell you is going on, not what the so-called professional analysts are telling you.

Whether trading stocks or commodities, you can gather as many analytical evaluations as there are analysts to talk to. This is evident in the wheat markets. Currently there is a severe drought in Australia. Australia usually produces 25 million bushels of wheat annually. Last year's drought dropped that production to 10 million bushels. This year's drought has just dropped the estimates from 22 million bushels back closer to the last year's production of 10 million bushels. A world shortage of wheat is in progress.  Commodity analysts everywhere has been projecting that wheat prices could go to $10 a bushel. If you listen to what the so-called experts are professing, you are basing your investment decision upon their analysis. However, the candlestick charts reveal a completely different scenario.

Three dojis at the top of the uptrend, at $9.50 a bushel, indicated a different opinion. The gap down in price followed by further selling has all occurred when the severe drought in Australia should be sending prices over $10 a bushel. Candlestick charts do not lie! They tell you exactly what is going on in investor sentiment.

DEC Wheat

Candlestick analysis works as well on commodity trades as they do stock prices. Applying the simple rules for when to be long position or short a position can provide large and consistent profits. Mr. Bigalow's monitored trading program is currently up over 30% over the past 90 days. Utilizing very simple candlestick analysis trading procedures allows an investor to partake in profitable trades a large percentage of the time.

Market direction - The markets may be getting a little bit toppy as evidenced in the NASDAQ forming a Bearish Harami/Doji in the overbought condition. Weakness tomorrow would show evidence of some profit-taking. This analysis also includes the fact that the trend has moved a little bit away from the tee line. The T-line has been acting as an up trending support level.

But keep in mind, when prices move away from an obvious support level, it will usually come back and test it. The uptrend is currently still in progress but expect a mild pullback.

Nasdaq

Online training sessions - Only two days left before the Candlestick Forum's online training program starts. Do not miss the opportunity to gain some valuable knowledge and insights on how to effectively use the candlestick signals and other confirming indicators. Take advantage of this teaching event. You will be able to gain valuable knowledge from experienced investors. The insights and concepts, being taught by Stephen Bigalow and trader, Rick Saddler, will alter your investment perceptions forever. Click here for more information on the online training program. Sign-up now! Only two seats available.

Members Only Chat session tonight at 8 p.m.