Help with investing is inherent with candlestick signals
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.
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.