Moving average trading in technical analysis.
The importance of analyzing a chart is in recognizing the signals and their correlation to the surrounding indicators. While we focus primarily on indicators made from candlestick signals, we often increase our profits by using market trend analysis with candlestick signals combined with the locations of the moving averages.[Refer; Major Moving Averages - The importance of candlestick signals at major moving averages]Used as technical indicators, they alert us to important reversal points when learning how to invest in stock. Normally, moving averages are used when two or more differing averages cross. In Candlestick charting they become important support or resistance areas.
Plus, they can illustrate excellent reversal patterns, especially two of the major moving averages which are the 200 day and 50 day. Adding these two moving averages to the chart analysis produces consistent price targets and helps when first learning how to trade the japanese candlestick reversal signals.When the moving averages, the stochastics, and a candlestick reversal signal all appear at the same critical point, you have a stock investing system that puts the reversal probabilities immensely in your favor.
Each of these technical indicators are easy to learn and commom to most trading platforms. When you are trying to determine which stocks to buy, it makes sense to place as many probabilities in your favor as possible. Allow the candlestick patterns to narrow down your trading possibilities. Further reduce your trading list by scanning support and resistance levels based upon the major moving averages. Is your list still too big? Add in the stochastics position to review potential oversold stocks, and you have yourself some winning stocks.
I know it can be very time consuming to research stocks every day before the market opens. Iíve narrowed my entire process down to 20 minutes and you can too. In my video tutorial; ĎScanning Techniques to Higher Profitsí, I share my his personal techniques for quickly evaluating the best stock picks with the highest profit potential.
Market Direction: The Dumpling Top, a pattern that provides an immense amount of information. It is extremely important in being able to analyze a market trend. As with all candlestick signals and patterns, there is an expected result. The Dumpling Top is the pre-cursor to a strong downtrend. This pattern occurred during the previous summer.
Dow - Summer of 2008
The development of a Dumpling Top also allows an investor to make decisions on how they plan to invest. The description of a Dumpling Top is indecisive trading with a rounded top trajectory. The Japanese Rice traders describe it as indecisive slightly positive investor sentiment followed by indecisive neutral investor sentiment followed by slightly bearish investor sentiment. Finally, the bearish sentiment starts picking up force and creates a very strong downward move.
How does an investor trade this pattern? It may be more beneficial to stay out of the market as long as the rounding top trajectory can be identified. The oscillations between the up days and the down days makes it relatively difficult to make a lot of money in an established position. Or an investor may have to revert to day-trading or scalping while the market remains in this slow meandering process.
The result of a Dumpling Top pattern is a strong downtrend. This should prepare an investor to establish short positions, especially near the levels where a breakdown would occur. That is what should happen at the end of this pattern. That also makes for a simple bullish evaluation. If the strength of one of the price moves is strong enough to break through the round the top trajectory, the Dumpling Top pattern becomes negated and a strong up trend can be expected. Utilizing the information built into a candlestick pattern prepares an investor to take advantage of the information built into the development of that pattern. They can also take advantage of the information that would show the pattern has been breached.
This is not difficult analysis. The probabilities are extremely high that a pattern will perform an expected result. A breach of that pattern have high probabilities of producing the opposite result. Take advantage of this information. It allows you to have your positioning established in the right direction at the right time.
Over looked member benefits - Question and suggestions keep reoccurring about the services the Candlestick Forum provides. Often it is discovered those services already are provided on the website. There are many services on the Candlestick Forum website that even longtime members do not utilize because they were not aware the services were available. If you are thinking of joining the website or are an existing member thinking there should be more services available, here is the full gamut of services.
1. Chat room - The daily chat room is open during the market hours. Usually between 75 and 85 members are participating in the daily chat room. It is an excellent forum for constantly learning how to trade and use candlestick analysis correctly. This is a very helpful group, each realizing the more you help each other, the faster you become a profitable trader. AND they come up with excellent trades for the day trader and swing trader.
2. Members training sessions - Monday night's - This training session is a little more detailed than the Thursday night open sessions. The training goes into deeper details on how and why specific signals and patterns should be analyzed and which signals and patterns are profitable in todays market..
3. Daily stock picks and commodity picks - Two or three stock picks and a commodity pick is provided in a video format each day. This is not for the purpose of providing members with stock picks and commodity picks, but each recommendation is fully explained as to why it is being recommended. This continues the visual learning process for members.
4. Stock and commodity follow-ups - Once a entry position is executed, a follow-up video is provided each evening as to what to anticipate with that open position and when it is time to exit the trade. For the convenience of those that do not want to listen to the four minute follow-up video each evening, a follow-up text is provided for each position. This allows investors to quickly analyze what they should do with their open position.
5. Premarket evaluation - Each morning, right at the open, there is a daily market evaluation. These comments analyze where the market trend is going and what affects should be witnessed based upon the previous days candlestick formations.
6. Opening and closing comments - Each morning and each afternoon Stephen Bigalow provides a quick paragraph of what the market should be doing based upon the current candlestick formations and what should be done with that day's stock and commodity recommendations. These comments are provided immediately to the members in the chat room as well as being e-mailed. Mr. Bigalow then usually expounds upon those comments in the daily chat room.
7. Member product and trading discounts - Being a member of the Candlestick Forum entitles them to receive significant discounts on the Candlestick Forums training information and the live training seminars. Having this information available provides an excellent review program. These products expedite the learning process that occurs on the website every day.
The Candlestick Forum has an excellent track record for providing candlestick analysis information in an easy- to-learn format over the last eight years. The information is not expensive. Investors have gained a very good grasp on how to use candlestick signals when trading with options. What would cost thousands of dollars on other websites cost hundreds of dollars on the Candlestick Forum website. The learning process is constructed to make things easy-to-understand versus making it more difficult to learn.
Two Week Trial in the chatroom - The Candlestick Forum has been recently providing a two-week free trial to the Members' Area and chat room. This has produced a very striking revelation. The Candlestick Forum has discovered that many people were not aware of all the benefits available on the site. A holiday special is now provided. Learn about the services that can make you a much better trader during the holidays. We will offer another two week free trial to the Candlestick Forum Membership. This will allow you to discover how effectively the services of the Candlestick Forum have been put together to make investors easily learn how to utilize the information built into candlestick's. Email email@example.com with your full name and email address for a free 2-week trial.
Public Chat Session Tonight - 8 pm ET, everybody welcome, even your brother-in-law. Click here for instructions.
Attention Members - Commodity picks are now available on the daily stock pick video each evening.
The Candlestick Forum Team