Candlestick Trading Forum
keyword search

Candlestick Trading Forum
       

Stock market signals - A candlestick forte

Stock market signals are evident in the markets every single day.  Candlestick signals can be utilized for projecting market trends whether using the daily, weekly, or monthly charts and they can be incorporated into the analysis of one-minute, five-minute, and fifteen-minute charts.  Stock market signals illustrate investor sentiment contained in any specific time frame. The end of one time frame has different sentiment than the next time frame.  Although this may be a simplistic statement, the whole point of using candlestick signals is to specifically identify what investor sentiment is revealing during a specific period of time. Stock market signals, illustrated in daily and monthly timeframes, reveal important information for the health of a trend

Should a trend continue in the same manner prior to the end of the year and going into the beginning of the next year?  This question reverts back to the basic analysis of stock market signals.  Markets do not move based upon fundamental reasons.  Markets move based upon the perception of the view of the future.  The dynamics of the market trend, when finishing out a year and starting a new year, can have dramatic changes.  Do the fundamentals of the economy change from December 31 to the first trading day of the next year? Definitely not! But investors' attitude can change dramatically.  The previous year is over.  The new-year, a completely different time frame, has new potentials.  The attitude of investors going into a new time frame can be completely different.  That exemplifies the reason for learning what candlestick signals convey.  The graphic depiction of what investor sentiment is revealing is the force that moves the markets.  Stock market signals illustrate confidence or lack of confidence in the economy in general.  The level of confidence, investor sentiment, will have a dramatic effect on the price trends of individual stocks.  That information should be used for establishing market direction positioning for the portfolio.

The stock market signals produced in the first few days of trading of a new year is usually an indication of what investors' project the strength of the future economy should be.

When are most investors establishing an investment program?  Usually at the beginning of the year.  What sectors or industries will be the strongest for the coming year?  That analysis is usually done on a broad spectrum at the beginning of a year.  The candlestick signals in the first few days a trading become a strong indication of what all the mental  analysis has produced as results. These first few days will provide stock market signals that will be beneficial for making some strong profits in the near future.

 

Candlestick Trading Forum