Stock market day trading works just as efficiently with candlesticks signals as they do when trading on a daily/weekly/monthly basis. Investor sentiment is as crucial a factor in stock market day trading has it is for long-term investing. The same information is revealed in a one minute and five minute time frame as the signals reveal in a daily or monthly timeframe. Stock market day trading results improve dramatically when the short-term reversals can be clearly identified. The same psychology that is incorporated into investors thinking occurs in any time frame. Stock market day trading returns can be greatly enhanced using the time-tested 12 major candlestick signals. Click here for the 12 major signals special

The candlestick signals revealed on a one minute chart can be utilized for a number of entry and exit strategies. Trading stocks or indexes using a one minute, five-minute, and 15 minute chart combination is a trading program that works very successfully. These chart combinations can be used for day trading or finding the optimal level for executing a longer term trade. A bullish candlestick signal may be followed the next day with some weakness. Utilizing the candlestick signals on the short term charts reveals when the next day's initial selling finally ends. In an up trending stock, buying on the pullbacks becomes a very profitable technique.

Stock market day trading programs can greatly improve when applying candlestick signals, a very old and proven trading technique, with new computer generated technical analysis. David Elliott of www.WallStreetteachers.com has produced excellent technical research on finding indicator patterns that work a high percentage of the time. He's analytical abilities have produced technical indicators that utilize the modification of the existing technical indicators. For example, Bollinger bands do not provide a trading format to produce profitable trades. David Elliott has modified the Bollinger bands into MOBO bands, now making them effective profit making tools. His development of multiple stochastics formations produces highly effective short-term reversal setups. Applying this information with candlestick signals creates an extremely high probability trade. The melding of age old statistically proven candlestick signals with the capabilities of the indicators that are now available through instant computer analysis forms a very strong stock market day trading format. Click here for Wall Street teachers technical indicators.

Market direction - The Dow formed a Doji in Wednesday's trading. The sellers confirmed the Doji at the top. A dark candle the closes more than halfway down the middle of the previous bullish candle before the Doji sets up a strong reversal signal, the Evening Star signal. The Evening Star signal reveals the expected profit taking that should come into a market after weeks of a sustained uptrend. With the Dow acting weak, revealed in a sell signal, as well as the NASDAQ acting weak, logic dictates that the sellers are starting to take control. It can be assumed that the sellers are starting to take over.

To review the full pattern description for How to Trade the Evening Star Signal - click here.              

 Keep in mind, that after a strong uptrend as we have seen in the Dow, the potential of a Jay-hook pattern formation is still possible. The previous analysis of the Dow has been a steady up-move with pullbacks bouncing off the 50-day moving average. Recently though, we saw the Dow break through the upper end of the trend channel. This might put a new dynamic into the trend. Taking profits in some of the long positions at this level is prudent. And short positions could be added to the portfolio. What becomes the next logical target? The 50 day moving average. The strength of the Dow's upward trend since the last time it bounced off the 50 day moving average also warrants watching to see whether a Jay-hook pattern could form in the next few days. Bottom line though reveals that the market should be pulling back. The advantage that candlestick signals provide is being able to view the magnitude of the pullback.

The degree of Thursday's selling revealed that there was selling in all indexes. Unlike the previous pullbacks where one index was pulling back and another one was holding relatively steady, Thursday's selling was across-the-board. At this time, adding some short positions to the portfolio after being stopped out of a number of positions would be the correct strategy for the near term.

There will be a chat session tonight at 8 p.m. ET, open to everybody.

Private training schedule - The next private training session is scheduled for June 24 and 25th. These sessions are very enlightening. You will be amazed at how your perceptions of investing will be completely altered. This is not an intensive memory and learning exercise. This is viewing numerous charts while Mr. Bigalow explains the investor psychology and the use of other confirming indicators to gain a different perspective on when to be buying and when to be selling. Wouldn't you like to know the high probability buy points? Wouldn't you like to also know when the optimum time to come out of a trade is? These are the insights that you will gain when sitting in a two-day training session. You will gain visual recognition of when the smart money is buying and when the smart money is selling. The powerful evaluation processes gained from a candlestick training session will be something that you can utilize for the rest of your life. It shows you the potential of high profit trades. It also shows you how to get out of a bad trade quickly. Do you want to eliminate emotions from your investment program? Then you need to utilize the information that Mr. Bigalow provides in a candlestick analysis training weekend. Do not miss this opportunity. You will make consistent profits from this information. Click here for more private session details

Good investing,

The Candlestick Forum Staff

Stephen Bigalow is conducting 2-Day Workshop Seminars for training as a Candlestick AnalysisTechnician - Level 1. The level 1 coursework unravels the mystery of reading financial charts and propels your investment expertise to the next level. This 2-Day workshop takes the confusion out of tedious chart interpretation and replaces it with a quick visual snapshot within seconds!