Candlestick Stock TradingCandlestick stock trading provides traders with an easy to read, objective, and accurate means of measuring market sentiment. Stock trading typically relies upon technical analysis more so than the type of fundamental analysis used in long term investing. Technical analysis tools such as Candlestick analysis provide an objective view of market sentiment and help traders accurately predict market trends and market reversal in both a quiet stock market and in time of great market volatility. Candlestick stock trading has a long history. Its roots go back to rice trading in Japan in the days of the Samurai. Traders developed insight into repeating price patterns. Without even relying upon known fundamentals a trader could accurately predict if the price of rice was going to go up or down. This insight is something that stock traders know today. The market discounts the fundamentals as soon as they are known. As the years have passed Candlestick patterns have been applied to trading other commodities and to trading stocks.
Candlestick stock trading relies upon a set of signals. These Candlestick signals provide the same information as statistical presentations of stock analysis. Candlestick signals are, by comparison, easy to read as they distill useful information into signals. The Doji Candlestick signal, for example, indicates market indecision and is a good predictor of trend reversal. Traders often prefer Candlestick stock trading precisely because they do not need to wade through sheets of statistics in order to see where a stock price is likely to go next.
Candlestick stock trading is an objective way to approach the market. Too often traders get caught up in the psychology of trading. Fear and greed are the old bugaboos that tend to mislead traders into ineffective and losing stock trades. When stock fundamentals change the market discounts new information and prices shift. However, there is commonly a period of market inefficiency following a big shift. At this time the use of Candlestick stock charts gives traders an objective as well as easy to read means of assessing market sentiment. Using Candlestick pattern formations as a guide helps traders make objective decisions while the twin demons of fear and greed are ravaging the market.Candlestick stock trading is an accurate means of assessing stocks and stock prices. With Candlestick chart patterns history is your guide. Time and time in markets for stocks, commodities, options, or futures, economic, social, and market fundamentals drive prices in repeated patterns. Although a trader will always want to know the fundamentals of a stock he will commonly rely upon the signals of Candlestick stock trading for an accurate reading of the market. Candlestick stock trading takes the guesswork out of trading. It reduces risk of falling prey to the greed and fear that prevail in many markets. Candlestick stock trading gives traders an accurate view of market sentiment, whether they are trading individual stocks or engaging in stock index trading. The bottom line is that traders use Candlestick signals because they work and because Candlestick signals lead to profits.
Market Direction: Candlestick analysis is a great sifter. It sifts through the poppycock of government announcements or the insignificance of individual analysts or market commentators. Today's announcement that an agreement had been reached still requires the confirmation that a trend reversal had occurred based upon that announcement. As witnessed today, the initial euphoria was offset by the reality that once Washington's announcements are scrutinized, the substance is usually quite different than the verbiage. The candlestick signals represent the decision-making process of all investors involved based upon news or events. Once an investor can fine-tune to their recognition and understanding of specific candlestick signals and patterns, there is a tremendous gain of control for one's profits.
An apology is owed. The Candlestick Forum has been promising the development of long-term investment education information and picks be an added as a separate area to the website. That area of candlestick analysis is still in progress. Unfortunately, it keeps be unmoved to the back burner for one simple reason. The past three months have not been conducive for looking at long-term investments. The long-term pick area will be established in the reasonable near future, two weeks. Although the lack of market conditions may be a viable excuse for not getting information on to the website, the lack of moving forward as eliminated the learning process of why these market conditions are not producing long-term position situations. For the investor that does not have the opportunity to sit in front of the screen most of the day, the trading methodology for an investor that can move in an out of positions every few days or on a weekly basis, a trading program will be demonstrated. This area of the website will consist of instructions on how to use the longer-term charts to establish long-term trades but you short-term charts for entry and exit confirmation. We will have speakers such as Bob Prechter and other market analysts that are more oriented toward fundamental research making presentations to Candlestick Forum members. Please anticipate this information been established on the website during the third week of August.
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