Stock market investing advice can be qualified with candlestick signals
Stock market investing advice is everywhere. How do you tell what stock market investing advice is good or bad? Candlestick analysis helps an investor evaluate whether somebody's stock market investing advice is worth considering. Many professional advisors may be able to tell you 'what' stocks to buy; they do not have the insights to tell you 'when' to buy. Buying an excellent stock position may be correct for the long-term, but the overall rate of return can be greatly diminished if you are buying at the wrong time. A purchase today, at the top of a trend, may see a pullback that could take many months for the stock price to come back up to the break even level before going higher. Stock market investing advice should be utilized with candlesticks signals. Everybody wants to buy good-quality positions. But buying them at the right points of their trend is extremely important.
The candlestick signals clearly illustrate what the buyers and sellers are doing. Prices move in patterns. Trend reversals can be distinctly recognized when using candlestick signals. However, trends may have different price movements in specific market conditions. The Valero Energy Corp. chart is a good example of when to buy, when to sell, and when to buy back. Note the strong reversal signal, a gap down spinning top nearing the 200 day moving average with stochastics in the oversold condition. What would be the first potential target?
VLO
The 50 day moving average. Because prices move in patterns, the candlestick investor has a distinct advantage for witnessing what investor sentiment is occurring at important technical levels. Candlestick sell signals occurring at the 50 day moving average revealed important information. The 50 day moving average is going to act as resistance. Although somebody's stock market investing advice may have been buying and holding VLO, a candlestick investor can extract bigger profits from a price trend by knowing when to get in and when to get out.
The ability to analyze what the candlestick signals are revealing protects the investor. To state simplistically, the signals make it evident when the buyers are coming in and when the sellers are coming in. Stock market investing advice is only as good as the analyst putting out that advice. However, even the best analysts can have things happen to a stock price that they cannot foresee. The benefit of candlestick analysis is graphically depicting the evaluation of everybody that is buying and selling that trading entity. Witnessing investor sentiment that is changing in a stock allows the investor to interpret market conditions the even the best analysts might not have considered. The candlestick signals, especially the major signals, reveal the true forces of the market conditions.
Do not make investing difficult. The candlestick signals provide a clear graphic depiction of what is going on in investor sentiment. Utilize the signals to confirm when to buy. Utilize the signals for coming out of positions. Because of the centuries of analysis that have gone into the candlestick signals, the probabilities are always in the investors favor when using candlestick signals correctly.
When the market in general is moving in a steady trend, as we have seen over the past few months, prices can develop well-defined patterns. The strongest of these patterns is the Jay-hook pattern. Knowing the simple basics of how a Jay-hook pattern is formed produces the opportunity to extract large profits from the markets. These patterns usually develop when there are not any severe fluctuations in the general markets. Investor sentiment is not subject to changing drastically if the markets remain relatively stable. Understanding the first conditions of a Jay-hook pattern, a very strong uptrend, makes finding the potential Jay-hook pattern easy. As seen in the Nuance Corp. chart, the price was moving up, pulled back, but then started demonstrating indecisive candlestick formations. This provides the visual opportunity for recognizing the potential of a next move to the upside. A Jay-hook pattern is a very powerful high profit pattern. Learning how to utilize it is very easy. It can provide an investor with a trading tool that produces big profits. Click here for information on the Jay-hook pattern training CD.
NUAN
Market direction - The large Bullish Engulfing signal candle coming up off the 50 day moving average in the Dow negated the possibility of severe selling if the 50 day moving average could not hold. However, as the previous analysis of the market conditions indicated, the selling was not appearing to have any urgency over the past few weeks. The combination of the market moves in the Dow and the NASDAQ illustrated funds moving from sector to sector versus coming out of the markets. The strong bullish day clearly indicated that the Bulls were stepping in at important technical levels. Wednesday could have been a day where prices consolidated. This is not unexpected after a big price move. But the fact that the Bulls continued to hold the market up clearly illustrated that the Bulls were now in control. Thursday's close in the Dow, closing above the recent highs of mid March, reveal more upside.
DOW
As can be seen in the NASDAQ chart, the slow rounding bottom should be the prelude to a buildup of strong investor confidence. The longer this rounding bottom persists, the higher the probability of the investor confidence will start growing dramatically. The 50 day moving average still should be used as an important technical level. As long as the prices stay above the 50 day moving average in both the Dow and the NASDAQ, the uptrend should remain stable. The Bearish Harami seen in the NASDAQ in Thursday's trading continues to indicate that money keeps shifting from one sector to the other. The projection of a slow waffling uptrend remains in tact.
NAS
Private Sessions - There are still openings in the May 6 and 7 private session with Steve Bigalow. Do you want to be able to analyze the market trends in general as well as finding high profit individual stock moves? That is the knowledge that becomes quite clear when sitting in front of the screens with Mr. Bigalow. His method of instruction allows an investor to gain full confidence in their own candlestick analysis. This is not difficult! This is understanding the common sense investment perceptions that are built into candlestick signals and price patterns. Do not miss this opportunity. The information you receive when attending these sessions will completely alter how you look at making profits in the markets. Click here for private session information.
Chat session tonight at 8 p.m. ET - The chat session for Monday night the 24th and Thursday night the 27th is going to be attempted while Mr. Bigalow is giving his presentations at the Seminar at Sea cruise. The word "attempted" is the key word. Satellite connections from the cruise ships may not be strong enough to do the chat sessions. Notices will go out Monday advising of the schedule.
Good investing,
The Candlestick Forum Staff
Newsletter - April 20, 2006 - Stock market investing advice complemented with candlestick signals
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