The basics of stockmarket investing should not be a complicated process. The basics of stock market investing should be a trading strategy that is very simple to implement and easy to analyze. Most investment trading strategies require years of education. Trying to learn how to utilize the Elliott wave theory is like trying to hit a moving target. Other investment strategies require having an MBA from a business school. The basics of stock market investing is very simple. Buy stocks that are going up and sell stocks that are going down. Although this may sound trite, most investors get involved with trading strategies that are way too complicated. The basics of stock market investing are built into candlestick signals.

Candlestick analysis is the process of interpreting common sense investment practices and attitudes. What makes prices move in the stock market? Perceptions! The perception that a stock/company/sector has good or bad prospects for the future. The basics of stock market investing should come down to one very simple element. Is this price about to move higher. The candlestick signals are a graphic depiction of what investor sentiment is doing in a price trend. Investment psychology has remained the same throughout the centuries. Investors have a lot different thinking process when prices are at the low end of a trading range than they do at the top end of a trading range. Candlestick signals incorporate the basics of stock market investing into a graphic form. The candlestick signals and formations show what investors do at the bottom of a trend as well as what the investor psychology becomes at the top of a trend. Having this information in a clear visual analysis makes investing that much easier to understand.

The psychology that forms candlestick signals and candlestick patterns is very valuable. It is the normal investor's thinking-process that appears consistently ever since the beginning of investing and will continue for centuries to come. There are 12 major candlestick signals that clearly illustrate what is happening in investor sentiment. These signals work very powerfully on their own. Once an investor has learned the psychology behind the formation of these signals, they will be able to understand and evaluate any trading market. Not only does investor sentiment create reversal signals, investor sentiment consistently produces trading patterns in the markets. Being able to visually analyze candlestick signals in a trading pattern produces an extremely powerful combination of analytical tools. The Candlestick Forum provides clear and concise training CDs for utilizing the 12 major signals profitably. The visual training, allowing the eyes to identify the optimal indications of a reversal, while listening to what the investor sentiment was that created the signal, makes for an easy learning process. This information, once established in the investor's mind, will be profitably utilized for any trading market.

Additionally, the Candlestick Forum provides eight information packed training CDs that demonstrate where the signals work most effectively with other technical indicators. When prices gap up after a bullish candlestick signal, this provides a powerful profit potential. When prices reverse at major moving averages, the probabilities increase dramatically for a positive profitable trade. When prices move in patterns, the candlestick signals clearly reveal what is occurring in that pattern. The information found in these eight training CDs also greatly enhance the probabilities of not only being in a correct trade, but also in a very high profit trade.

The combination of information in these two candlestick education packages will alter an investors perceptions for the rest of their lives. This is not rocket science! This is common sense investment practices put into simple visual analysis. Once an investor learns how to use the candlestick signals and patterns correctly, their return results will improve substantially. Emotional decision making will be eliminated. Pinpointing where the money is flowing to and from will be easy to recognize. Stop loss procedures for cutting losses short immediately are fully explained. When to buy high profit trades will be clearly demonstrated. More importantly, when to get out of a trade will be clearly demonstrated.

Take advantage of the Candlestick Forum's website special. Buy both, the "12 Major Candlestick Signals" training CD package, ( a $509 value sold as a package price for $397.00 ) and the "Advanced Candlestick Analysis" package ( $442 worth the value sold as a package price of $377 )

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Market Direction - The direction of the markets became very easy to recognize earlier this week. An Inverted Hammer/Harami signal formed in the Dow on Monday. The bullish confirmation seen in the trading on Tuesday, with stochastics in the oversold condition, revealed that the Bulls were starting to step in. The bullish trading of the past few days further confirmed the trading channel that has developed since the beginning of February. Thursday's trading shows some consolidation in the Dow but nothing that changes the potential uptrend.

The NASDAQ, although a little bit tentative, forming a spinning top, still has not shown anything that would imply that the slow uptrend is  no longer in progress. From a general point of view, the uptrend in the markets is intact. Further evidence is seen in the fact that during these pullbacks, there are many sectors that are remaining strong. This indicates that investment funds are not leaving the market, they are just moving from one sector to another.

Gaps - When general market conditions indicate that there does not seem to be anything that is currently going to change the trend of the market, utilizing the indicators and patterns that produce high profit situations become that much more effective. If the market is not going to change direction in the near future, and the high profit trading patterns, such as gap-ups, have that much more ability to perform effectively. As illustrated in one of the Candlestick Forum's recent picks, Long Drug Stores Inc,.LDG produced a very big profit due to a gap-up in price from a recognized reversal situation.

A series of dojis, in an oversold condition, illustrated the potential for a very strong change of investor sentiment. The gap-up following that indecisive trading period immediately became a clear indication of which way investor sentiment was moving. The gap up after a candlestick signal is a very strong buy scenario.

When that same pattern is revealed, as seen in the Bebe Stores Inc. chart, the price gapping up above the 50 day moving average and closing above the 200 day moving average after an Inverted Hammer signal, becomes a very strong indicator that this price involves new investor dynamics. This is the type of probabilities that should be put in an investors favor as often as possible. The Japanese rice traders have identified high probability reversal signals and have profited greatly from knowing what investor psychology occurs in observed signals/patterns.

Three days to go - The "Gaps at the Bottom" and the "Gaps at the Top" training CDs special will be available until Sunday evening. Learn how to use candlestick signals and gaps effectively.

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Utilizing candlestick signals in conjunction with gaps can produce extraordinary profits for an investing account. Do not miss out on this special. These CDs will pay for themselves many thousands of times over. Why wait? The information provided on the CDs will produce profits immediately. Click here for details

We will be doing a chat session tonight at 8 p.m. ET

Good investing,

The Candlestick Forum Staff

Newsletter - Basics of stockmarket investing with candlestick signals - April 6, 2006

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