Finding Stock Price Breakouts Using Candlestick Signals
One of the most profitable trading strategies is identifying stock price breakouts. Stock price breakouts incorporate one simple element. Something new and dramatic has occurred in a stock price, making it extremely desirable for investors to get into the position quickly. A breakout pattern is very easy to scan for and identify. Utilizing Candlestick signals creates an easy platform for maximizing profits once a breakout has occurred. The signals provide the ability to determine whether to get into a stock trade after a huge percentage move immediately or wait for the profit-taking pullback. This can be done with some very simple analytical techniques.Breakouts occur due to a change in world events or a dramatic change in the fundamentals of a company. As illustrated in the INVN chart, a world event changed the fortunes of this company. 9/11 made the product of this company a high profit potential.
INVN is a manufacturer of the luggage scanning machines for airports. The interest in their product after 9/11 moved the stock price from $2.50 to over $45 in approximately 4 months. What was the best way to trade this position? The black candle on the breakout day provided a much different scenario than if a white Candlestick had formed that day. How investors react to news, whether a world event or a product specific announcement for a company, has a great influence on how the trend will perform from that point.
INVN
Currently the AVII chart is illustrating a breakout situation. Recent news announcements have taken the lethargic trading into new recent highs. Volume becomes a very important factor for identifying a breakout situation. The probabilities are extremely high that once a breakout in price occurs, especially out of a very boring trading pattern, the uptrend will continue for a reasonably long period of time, due to the new interest that has come into the stock. The large volume trading days, going from approximate 200,000 shares a day to well over 2 million shares a day clearly demonstrates that new interest has entered the stock.
Once large percentage gains have occurred, pullbacks should be expected. How these pullbacks are portrayed with Candlestick signals is a very important factor for evaluating whether a profit-taking pullback is occurring or the uptrend is over. Having this knowledge greatly enhances the ability to ride through a strong positive move without getting out too soon.
AVII
Market Direction - The Morning Star signal in the Dow with stochastics in the oversold area has been the overriding reversal signal. What could have been a potential of a Double Bottom, or at least a test of the recent lows, was eliminated as buying brought the Dow index back up through Wednesday's open. Wednesday's Bullish Engulfing signal with stochastics closer to the oversold area than the overbought area illustrates that the buyers are still in control. The profit-taking of Tuesday and early Wednesday adds to the health of this uptrend.
The Dow
Continue to hold long positions in strong sectors. The uptrend should eventually test the 50 day moving average and the 200 day moving average.
The Book is Finished! - High profit trading patterns become dramatically more predictable when utilizing Candlestick signals. Practical applications, for greatly enhancing investment returns, are now compiled in an easy to understand format.
Revealed in:
High Profit Candlestick Patterns:
Turning Investor Sentiment into Profits
by Stephen W. Bigalow
The immense amount of information incorporated into Candlestick signals is abundantly illustrated with simple visual techniques. The often misunderstood Japanese Candlestick charting techniques are clearly demonstrated. Steve Bigalow's “ Profitable Candlestick Trading ” book resulted in an overwhelming response from investors finally learning how to utilize Candlestick signals profitably. His new book “ High Profit Candlestick Patterns ” introduces the investor to a refreshingly new and high-powered investment perspective. Candlestick signals provide visually compelling results. Japanese Candlestick charting techniques, integrated with statistically proven Western technical analysis, produce an even more powerful investment platform. The ability to recognize trading patterns in their very early stages empowers an investor with high profit trading strategies.
For the technical investor, the combined analysis provides potent trading programs. The fundamental investor gains tremendous insights into the timing of positions. The introduction of cutting-edge computer generated technical analysis, with the world's most proven trading technique, becomes a powerful tool for understanding the movements of the markets. Discover simple candlestick charting techniques that put the probabilities highly in your favor.
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.
There is one seat available in the October 22nd and 23rd training class. If you're interested in spending two full days with Steve Bigalow, learning all the intricacies for trading Candlestick signals profitably, do not miss this opportunity. The information that you are receive from a two-day training session with six months of follow-up will pay for itself many thousands of times over. You'll get a full grasp of what makes prices move at reversal points. You'll have a full understanding of the investor sentiment that make prices move. This knowledge will greatly enhance your profitability for the rest of your life.
A November training session is also being scheduled. We will provide the details in future newsletters.
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Do not delay, gain the understanding of how prices move. This is information that you will be able to use for the rest of your life. The profits that this information provides can be made in your account month after month after month.
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.
Related Topics:
Swing Trading Stocks - Big Profits With Candlestick Charting Techniques
Identifying Reversal Signals - What goes up, must come down! Candlestick charting techniques provide quick visualizations.