The characteristics of a trend can be much more easily analyzed through the candlestick formations. Analyzing the markets this morning would've appeared very bearish, the Dow was down approximately 100 points while the NASDAQ was down 20 points. On the surface, this would appear to be a relatively bearish day, possibly a reversal. Fortunately, the visual graphics of candlestick formations allows an investor to make a much more accurate assessment. While it Dow is trading down approximately 100 points, creating a bearish candle, the NASDAQ had opened lower and was trading above where it opened. This observation has significance. It illustrates that there was bullish activity occurring in the NASDAQ, a white candle was forming. This provides valuable information. Although the Dow is trading down after the open, the NASDAQ was trading up after the open. This simply signifies that there was no mass selling occurring in the markets, just shifting of capital. Having the ability to see what is occurring in investor sentiment helps an investor formulate exit strategies or a non-execution of investment strategies. Witnessing that there was not selling across-the-board today allowed for patience to see what would occur by the end of the day.

Candlestick price patterns also allow for participating in price moves that have much more inherent forces. This can be illustrated by watching positive price movement in a pattern when the rest of the market conditions are bearish. Utilizing candlestick signals and patterns is just another aspect that puts the probabilities in an investors favor. This provides the benefit of producing profits even when the market conditions are not bullish. It also allows for the candlestick investor to close out positions moving up off of patterns with more time to take profits before the general market conditions start pulling a position back down.

Seminar at Sea - Please visit our website home page for more details about the Seminar at Sea. This is a very enjoyable and productive method to learn a number of profitable trading techniques at one time. This allows for each individual to develop their own trading technique by taking pieces of techniques and applying it to their own trading style. With four or five successful investment traders giving presentations on this cruise, it makes for a learning format that allows investors to pick the traders brains at lunch, dinner, and sipping drinks with little umbrellas in them by the poolside. Join us for a fun and educational trading cruise.

Good Investing,

The Candlestick Forum Team