Stock market investing strategy using candlestick signals

What is the best stock market investing strategy? The strategy that consistently puts the probabilities in the investor's favor. Candlestick signals can be applied to produce the best stock market investing strategy for the day trader as well as the long-term investor. Candlestick signals contain investor sentiment that is simply common-sense investment analysis in a graphic form. What are the elements of a stock market investing strategy that most investors lack? A platform for demonstrating when it is time to buy and when it is time to sell. Fundamental research tries to find the companies that have a long-term positive prospect. Good management, good earnings growth, and an industry that has growth potential. Unfortunately, most fundamental recommendations do not have any timing element. Candlestick signals can dramatically improve the returns for a fundamental stock market investing strategy. Buying a good long term position at the wrong time can diminish overall returns dramatically.

A stock market investing strategy for most technical trading methods utilizes indicators that illustrate what investor patterns/perceptions have produced as far as price patterns in the past. These trading techniques usually rely upon 'assuming' reversals may occur at specific levels. Candlestick signals greatly enhance a stock market investing strategy by eliminating the "assumption." If a price is expected to reverse at a major technical indicator such as Fibonacci numbers, trend lines, or moving averages, candlestick signals can provide a huge benefit. The best stock market investing strategy results from not just expecting a reversal to occur at a certain technical level, but being able to actually interpret correctly what investor sentiment is doing at those levels. Candlestick signals produce a powerful insight into a change of investor sentiment. Being able to evaluate what is actually happening at a technical level, versus needing a few days to confirm that a reversal has occurred, creates a very profitable advantage.

A perfect stock market investing strategy is having immediate confirmation at important technical levels. The candlestick signals create a double benefit. It provides immediate recognition that a reversal is occurring, allowing investors to get in to a trend at its earliest stages. It also provides lower risk stop-loss strategies. One of the biggest problems most investors encounter is their own ego. If they have made a decision to buy a position, because of their mental prowess, it becomes very hard to close a position that does not work. Candlestick signals create an excellent format for stop-loss procedures. Simple logic dictates the closer the entry point after a candlestick buy signal, the smaller the price move against the position for executing the stop-loss. Stop-loss procedures, using candlestick signals, are very simple. It takes all the emotion out of coming back out of a trade. If the candlestick buy signal was the indication that the buyers were now in control, prices coming back down through that signal would immediately tell us that the bears were still in control.

All investment professionals advise us to cut our losses short and let our profits run. But did you ever notice that they never tell you how to do that? The candlestick signals make that very simple to implement. The Candlestick Forum provides a highly informational e-book on how to use candlestick signal stop-loss procedures correctly. Of course, all investors want to be in winning trades. But reality shows us that not all trades are going to work correctly. One of the most important elements of a successful stock market investing strategy is knowing when to take quick losses. The point of investing is to maximize your profits in your account. Part of that process is eliminating the unsuccessful trade as quick as possible so those funds can be moved back into high probability trades. Click here for Stop-Loss e-book special.

Market direction - Although Thursday's trading in the Dow was relatively indecisive, which is not unusual on a day before a three-day weekend, the trend potential is fairly easy to recognize what the candlesticks in the Dow and the NASDAQ. Wednesday showed an indecisive day in the NASDAQ with a bullish day in the Dow.

Thursday showed a strong day in the NASDAQ with an indecisive day in the Dow. This still produces more evidence that no severe selling has come into these markets. The slow uptrend is still in progress. This provides the opportunity for taking advantage of the strong candlestick buy signal patterns that will not be deterred by a near term severe sell off in the markets. The longer a market trend can stay consistent in one direction, albeit slow, the more time that investor sentiment can complete the patterns that usually occur.

Stop loss procedures - Candlestick signals will tell an investor what is exactly going on in investor sentiment. Once the signals are identified and a trend is identified, there becomes a very simple basic assumption. As illustrated in the ISE chart, the bearish signals occurring at the 50 day moving average produced an excellent short situation.  The simple assumption should be that if the sellers were in control, prices should not be moving back up. Continued selling should be witnessed. What would be a logical stop? A close above the open of the last selling day. If prices came up through that level and closed above that level, that would indicate that the sellers had disappeared. Exactly  what should not be experienced in a downtrend. A Morning Star signal is now formed with the stochastics in the oversold area.

That definitely reveals that the sellers are not in control. This becomes an immediate alert for the investor that is in a short position to immediately start covering their short position. Buyers should not be coming into this downtrend with that much enthusiasm. The point of investing is to identify whether the Bulls or the Bears are in control of a trend. Once you can  see that the existing trend is being completely negated, a position should be closed out immediately. This is not rocket science. This is common sense for where you should have your money placed.

Private training sessions scheduled - Another private training session with Mr. Bigalow is scheduled for May 6 and 7. These valuable training sessions are just the beginning. After two days of going through Stephen W. Bigalow's training session, an investor will have a much more comprehensive perspective of why prices move. Not only will they understand why the prices move, they will be able to visually identify immediately when major reversals are occurring. An investor's results improve dramatically the very next day after one his training weekends. This is not a vague promise, this is actual results. The two days are packed with information that an investor will use for the rest of their lives. Do you have to have it sink in over the weekend? No! The majority of the knowledge that you gain from a private training session will be visual recognition of when a high probability trade will occur. More importantly, the clarification and the fine tuning of candlestick analysis comes from being able to access any information you require from Mr. Bigalow and the Candlestick Forum after your training session. The majority of the learning process for recognizing high profit candlestick trades will be sitting in front of the screen with Mr. Bigalow for two solid days. But what ever you don't feel you learned, you can keep coming back and asking questions as long as it takes for you to master candlestick signals. Click here for details on the next private training session

AND Mr. Bigalow feeds everybody well. You will enjoy some of the best steak in Texas.

Chat session Thursday night 8 p.m. ET - Tonight we will have a special guest, Ricky Wayne, a student of Mr. Bigalow's private training sessions. Many members have requested that he speak upon how he is using candlestick signals successfully. Over the past few years, he has left his job and is now trading full-time and making very good money. Come join us and get another perspective on how to use candlestick signals successfully.

Monday night, members chat, 8 p.m. ET - Discussing why a number of recommendations are working correctly and what to anticipate in their trend price under these market conditions.

Good investing,

The Candlestick Forum Staff

Newsletter - April 13, 2006 - Stock market investing strategy using candlestick signals

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