Technical Analysis Training With Candlestick Signals
Technical analysis training is greatly simplified when incorporating the 12 major Candlestick signals. Many technical analysis training programs concentrate on specific criteria. The major benefit of Candlestick analysis is that it can be applied to any technical analysis method. Understanding the investment psychology that forms Candlestick signals dramatically improves an investors understanding of what is occurring in a trend. Being able to analyze what is happening at important support and resistance levels allows the Candlestick investor to establish positions at optimal levels.
Whether an experienced investor or just learning, applying Candlestick signals into technical analysis training takes the guesswork out of investment decisions. The information provided by the signals can create consistent profits in any trading entity. The commodity trader, Forex trader, and option trader can incorporate the Candlestick signals into their technical analysis training as easily as any stock trading program. The candlestick charts make the visualization of trend reversals very easy to see.
The Candlestick Forum will be producing an extensive technical analysis training program for the options trader. The signals provide an excellent format for evaluating direction and magnitude of price movement. These two factors, when correctly analyzed, provide the opportunity to make extensive profits in the options market.
The Candlestick Forum option technical analysis training will involve analyzing the correct option strategy based on the potential magnitude of a move during particular time constraints, expiration dates. Having the ability to project direction is a major stumbling block in most investment programs. The Candlestick signals greatly alleviate that problem.
Being able to use the Candlestick signals to analyze the WYNN chart at the beginning of July made for a very compelling option trade. The Bullish Harami on the first day of July demonstrated that the selling had stopped. The following day showed confirmation buying. The 50 day moving average came into play. Additionally, the potential for a Scoop pattern to develop could be observed.
Putting these factors into our technical analysis training provided an optimal option trading strategy. One strategy involved buying the July and August 50 calls. The premiums were relatively low due to a lack of great amounts of positive investor sentiment. The stop loss target was simple, the low of the last day of June's trading.
The combination of buying calls and selling puts provided a highly profitable trade scenario. Put premiums were still relatively high because investor sentiment had not turned positive for most investors. The Candlestick signals revealed that potential. Opportunities to double, triple, quadruple profit returns become reasonably obtainable when incorporating simple Candlestick analysis techniques. Watch for additional option trading strategy information being put forth in the members stock pick commentary.
Market Direction - The markets had an opportunity to sell off early in the week. The Dow formed an Evening Star signal which was negated the next day, no selling confirmation. The past two days have shown closes above the recent peak of mid-June. Stochastics still maintain an upward direction indicating that the uptrend may persist.
The NASDAQ also had the opportunity to create some “sell” signals but negated the selling with a Kicker signal to the upside on Tuesday. Although the stochastics are in an overbought area, the buying has shown good strength.
Crude Oil prices appear to be weakening, the Bearish Engulfing signal of two weeks ago is still in effect. The 50 day moving average could be a support level but that implies at least a few more days of weaker Crude Oil prices. This, occurring at the same time that interest rates appear to be remaining relatively stable, produces a positive scenario for the economy. Interest rates remaining low and oil prices appearing to be backing off could lead to more confidence in the equity markets.