Stock market results require a proven trading system. Whether day-trading or long-term investing candlestick signals dramatically enhance an investor's capability to recognize reversals. Most stock market results are based upon a mixture of investment decisions. Some investors will buy every hot stock tip that they hear. Some investors will only invest in stocks that are above specific moving averages. The best stock market results occur when an investor has a well disciplined investment strategy. Candlestick signals provide an extremely high probability format for identifying the best possible investment situations.

Stock market results should be based upon an investment strategy that is going to maximize an investor's return. This may be overstating the obvious, but most investors confuse having an investment strategy with producing positive results. Fundamental research looks to identify stocks/sectors that have great potential for the future. The risk factor for long-term fundamental analysis is that many factors can come into the market before any expected result can occur in a stock price. Today's fundamental research, which expects specific stock market results, may be influenced by other market factors that cannot be projected at the time of the initial analysis. World events or improvements in competitor's products can greatly affect the long-term outcome of a stock price.

Candlestick signals provide an expected set of results. These stock market results are based upon centuries of analysis of what investor sentiment does to price movement. A candlestick buy signal in an oversold condition creates a high probability of a bullish trade. A candlestick sell signal in an overbought condition creates a high probability of a downtrend starting. Stock market results can be greatly refined when understanding what the candlestick signals are conveying. High profit trades can be much better analyzed when knowing what previous signal patterns have produced. As illustrated in the Neoware chart, the position was recommended when a bullish engulfing signal occurred in the oversold condition followed by a gap up the next day. The fact that investors wanted to come into this position with exuberant buying after a candlestick buy signal in oversold condition reveals that a strong uptrend was now in the making.

NWRE

The Bullish Engulfing signal illustrates a reversal in investor sentiment. A gap up after that reversal represents that the new investor sentiment involves very strong buying demand. This combination has a high probability of producing strong profits. The gap up from a bullish candle reveals very strong buying. Utilizing candlestick signals followed by gap ups can make a very good living for the astute candlestick investor. This is not a difficult concept. Where do you want to have your funds invested? Where the buyers are buying aggressively! The candlestick forum provides some excellent training CDs utilizing candlestick signals followed by gaps. Most investors do not want to buy a stock that is already up 10%, 15%, 20% on the day. However, a candlestick investor, knowing what the gaps mean after a candlestick signal can participate in price moves that may still have a 100%, 200%, or greater move left in it after the gap up.

Obtaining large stock market results is a function of understanding how to use candlestick signals and gaps correctly. Wouldn't you like to know where the strong moves are about to occur in the markets? That is exactly what the gaps reveal. Take advantage of this weeks web site special. Buy the training CD,"Trading Gaps" which combines both of our individual videos; "Gaps at the Bottom" and "Gaps at the Top."  Each video normally sells for $69.77 for a total of $139.54 for both videos. Buy "Trading Gaps" now and get both for the price of one! Having the knowledge of what will occur with an extremely high percentage probability after a gap allows the investor to take advantage of extremely high profit situations. This is not rocket science! This is the mere understanding of what occurs in investor sentiment. Click here to take advantage of the Candlestick Forum web site special

Market direction - The Dow had the opportunity to start rolling over this past week. It had formed a doji followed by a bearish candle last week. Notice the day after the doji, although not quite a shooting star, definitely illustrates that the Bulls were trying to take the market up in the bears brought it back down hard before the end of the day. The following day was a bullish engulfing signal. Always keep in mind, witnessing a bullish engulfing signal at the top of an uptrend, is usually indicating the last gasp buying. Immediately start watching for a candlestick sell signal. A bullish signal was followed by a bearish Harami signal the next day, telling us that the buying had stopped. Monday's trading in the Dow revealed further weakness.

The NASDAQ demonstrated some slight positive trading on Monday. When the Dow has been showing weak signals, the NASDAQ has been moving slowly upwards. The Dow showed weakness while the NASDAQ is showing mild strength can be analyzed as the sectors starting to rotate. This does not necessarily mean a severe pullback is in the making. The analysis shows there may be some profit taking occurring in the Dow as it is resting from it's recent strong rally. This would make the portfolio strategy oriented toward holding the long positions that are not showing toppiness and adding a few short positions in the sectors that are starting to roll over.

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Newsletter - Stock Market Results Enhanced with Candlestick Signals - March 27, 2006

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