Stock market investing education with candlestick signals
Stock market investing education becomes very convoluted with all the different parameters that analyst try to put into their analysis. Stock market investing education becomes the result of what analysts "think" should move market prices. Candlestick analysis cuts to the chafe. The candlestick signals reveal exactly what is going on with a market trend. That should be the basis for stock market investing education. Everybody can find all sorts of parameters that "should" make prices move one way or the other. Candlestick signals do it.
Candlestick signals are the proven results of hundreds of years of analyzing price reversals. Stock market investing education should start with a reliable format. Candlestick analysis is the common sense investor sentiment analysis put into a graphic depiction. For the investor that is trying to obtain a stock market investing education, the candlestick signals provide a very easy learning process. The visual results of candlestick signals are easily described. The investor sentiment that creates a candlestick reversal signal is purely common sense applied to a graphic.
Having the knowledge of what creates a candlestick signal allows an investor to understand the basics of investing. The signals illustrate when to buy low and when to sell high. The probabilities are greatly enhanced when understanding what is actually happening at important technical levels. The candlestick signals reveals the investor sentiment 'immediately' at levels where other technical analysis is only anticipating. That can be seen in the analysis of the Dow.
Market direction - The past four days prior to today formed Doji's and Inverted Hammer. This indecisive period of the market occurred when the stochastics had gotten to the oversold condition. That made the probability of a market reversal that much greater. As can be seen in the Dow chart, a small Cradle Pattern is in the making. What could be the first target? At least a test of the 50-day moving average. Having the knowledge that the markets have a good probability of bottoming-out allows the investor to start covering short positions and adding to long positions that have excellent "buy" signals.
The basic premise of this type of portfolio positioning is that it is going long when the probabilities indicate the market oversold and indecisive, and going short when the indicators reveal overbought conditions and candlestick "sell" signals occur. The conditions of the Dow currently reveal the probabilities being very strong for at least a short-term bounce.
The NASDAQ also started revealing indecisive trading in the oversold condition. A bullish Harami, followed by a Doji, followed by a Bearish Engulfing signal in the oversold condition, followed by another Bullish Harami, confirmed with a gap-up on Thursday. With the stochastics starting to curl up, it becomes an extremely high probability that the NASDAQ will test the 200 day moving average.
This is not difficult analysis. The candlestick signals make it a very simple visual evaluation that puts the investor's funds in the right direction at the right time. The 12 major signals found in candlestick analysis make being in the right direction at the right time an extremely high probability situation. Click here for the 12 major signals special.
High profit trades - If the analysis is now that the