Help with Investing with Candlestick Signals

Where do most people get help with investing? When they start their investment activity, it is usually by getting information from where ever they can. That involves depending on a stockbroker or other investors. Getting help with investing from those sources is usually the blind leading the blind. Candlestick signals create a huge benefit for those that need help with investing. The signals were developed while incorporating common sense and logical investment practices into a graphic depiction. An investor, whether just beginning or with many years of experience, will obtain an education on what the correct procedures are for investing when using candlestick signals. Buy low, sell high. That is the true concept for investing. However, where most investors need help with investing is getting through the emotions. Reality demonstrates that most investors panic sell at the bottom and buy exuberantly at the top.

The information provided in a candlestick signal reflects pure common sense. High profit trades can be identified by simply evaluating what the candlestick signals/patterns reveal. One of the highest profit trades is a breakout. What do the candlestick formations reveal in a breakout? The normal process of what most investors do after a big price move! A breakout is usually the result of news that will dramatically change the perspective of the price potential. That news could be company specific or world events. More than likely, whatever created the breakout will be influencing the price of the stock for the next few weeks. Being able to analyze what the candlestick formations are revealing will help with the investing of a breakout situation.

What are the most effective breakouts? Ones that have had a relatively flat trading range, a range that has illustrated no investor interest one way or the other. All of a sudden, the price gaps up dramatically; usually with an inordinate percentage gain. The problem is not finding a breakout; the problem is how to trade a fast-moving price situation. This is where many investors need help with investing. This is also where candlestick signals can make the entry level much easier to execute. The Candlestick Forum provides a highly informational training CD on how to use candlesticks and breakouts affectively.

As illustrated in the IFO chart, the breakout was clearly obvious. The previous trading range had been very dull. Whatever news made a price break out was strong enough to influence the price for the next few months. In the case of InfoSonics Corp. IFO, no severe profit taking occurred until the price had already tripled, moving from the $5 area up toward the $15 area. The day after the gap up breakout illustrated quick profit taking but by the end of the day it closed at the top end of the trading range. This clearly demonstrated that although the price of the stock was up 50%, the buyers were still coming in.

IFO

Blue Dolphin Energy Company, BDCO, revealed some profit taking after the price moved up 250% in the first two days. The profit taking never came back into the gap up bullish candle that illustrated the breakout. Positive trading after two days of pullback, followed by a gap up in price, again clearly illustrated that the Bulls were trying to get into this position as quickly as possible. What made the breakout so compelling? Notice the Fry Pan Bottom type pattern that occurred prior to the breakout. This indecisive trading pattern will usually be followed by a very decisive rally.

BDCO

The same situation can also be seen in the OraLabs Holding Corp. Once again, notice the Fry Pan Bottom formation that showed very little price fluctuation prior to the breakout. What is usually expected after a huge profit move? Some profit-taking. That is not a difficult analysis.

OLAB

Fortunately, candlestick signals illustrate when it was time to start adding to the stock position. The profit taking is obvious. However, where most investors need help with investing is seeing when a pullback is over. Realizing that a breakout can produce a long and strong uptrend, knowing when to get in to the uptrend with the least amount of risk is highly important. Once a profit-taking pullback occurs, there is no gauge for how far a pullback will move. But witnessing a candlestick signal that reveals that the buyers are stepping back in becomes valuable information. This will indicate that the profit taking is over and the uptrend should continue. This is not rocket science. This is using candlestick signals to take advantage of high profit situations.

Market direction - The Dow closed just below the 50 day moving average. The stochastics indicate that could be a few more days to the downside or at least sideways.

 The NASDAQ sold off hard on Monday but did manage to close slightly above the close of last Tuesday. Stochastics for the NASDAQ also appear to have a few more days to the downside. The slow uptrend projected for the markets is still in effect. The 50 day moving average should be a significant support level for both the Dow and the NASDAQ. There are stocks still trading strong in this market. There are also stocks selling off in this market. Having both in the portfolio is a good idea.

 The candlestick signals produce the benefit of being able to see which sectors are acting strong and which are acting weak. Because the stochastics are much closer to the oversold condition than they are to the overbought condition, continue to keep the majority of the portfolio to the long side.

Private Sessions - The next private session is scheduled for May 6 and 7. The small number of students in these sessions makes for a very comprehensive learning experience. Because of the amount of information one will receive during this two-day session, the brain gets fried and the butt gets sore. But in the manner in which Mr. Bigalow conveys his teaching of candlestick signals, each investor will inherently learn how to visually recognize and comprehend why a reversal is occurring. Do not miss this opportunity to improve your investment perceptions dramatically. The nuances that occur in candlestick signals will be pointed out so that an investor will master their own financial future. Do not delay!!! The education you receive from Mr. Bigalow's private training sessions will become profitable and effective the very next day. To find out more information e-mail pat@candlestickforum.com.

Click here for more details on the private training sessions.

Click here to read previous students' testimonials on Steve's Private Sessions.

Chat session tonight for members - learn how to trade breakouts - 8 p.m. Eastern time. Thursday night session is open to everybody. 8 p.m. Eastern time.

Good investing,

The Candlestick Forum Staff

Newsletter - April 17, 2006 - Help with Investing With Candlestick Signals

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