A stock market community has many benefits when learning a new investment technique. The stock market community that has developed at the Candlestick Forum site is a valuable tool for learning how to use candlestick signals correctly. Members have the opportunity to be part of the stock market community participating in the chat room. That chat room becomes a useful tool for solidifying candlestick analysis thought processes. The chat room, as well as the forum, provides a format for asking questions and getting answers that may have a different perspective. Going through a learning process benefits greatly when different analytical aspects can be brought to your attention.

The stock market community on the chat room produces immediate feedback. The creation of a community that is all in the process of trying to learn how to improve their investment abilities is a valuable asset when an investor wants to clarify how candlestick signals should be analyzed. This same stock market community receives the benefit of the Monday night members chat session. This session goes more in-depth into the existing positions that have been recommended on the site. An explanation of why the position was established and when to close out the position becomes instrumental for an investors learning curve.

Candlestick analysis is very simple. It becomes much easier to learn with constant contact with an investment group. Learning any new investment technique creates questions. When those questions can be answered immediately and by many different levels of experience, a much more concise analysis can be learned in a much quicker time frame. The 12 major signals are the core of candlestick analysis. Learning just those 12 signals provide more trading opportunities than most investors will ever require. To become successful in the stock market community, an investor should learn how to use these 12 major signals effectively. They not only illustrate when to get into a trade, knowing what each one is supposed to illustrate as far as investor sentiment, makes profit taking and stop loss procedures very easy to implement. Click here for the 12 major signal training package special.

Market direction - What could have been the possibility of a Blue Ice Failure has now completely changed. Being able to recognize what patterns may be setting up and what candlestick signals are forming allows an investor to shift portfolio positions immediately if a pattern is not working. The failure of the 50 day moving average by the Dow on Tuesday created the possibility of a Blue Ice Failure pattern which would anticipate the next target being the 200 day moving average. However, the bullish candlestick signals changed that scenario.

Not so much in the Dow, but the bullish signals appeared in the NASDAQ and the S&P chart. Both had Bullish Harami's formed on Wednesday. This was the immediate indication that the selling had stopped. That information now negates the possibility of a Blue Ice Failure. A new scenario should now be analyzed.

What happens the first time a major moving average is touched? Usually it fails. But the next approach usually breaches that moving average. With the Bullish Harami's in the NASDAQ and the S&P chart, indicating bullish strength, the analysis on the Dow should be anticipating the second approach of the 50 day moving average to breach that level. This analysis diminishes the negative sentiment that was revealed on Tuesday. Short positions should now be covered upon seeing bullish signals in those charts.

This should not be difficult analysis. Being able to analyze the possibility of a trend reversal and then analyzing the negation of that trend reversal permits an investor to analyze which way the trend should be moving. A possible downtrend created by Tuesday's trading is now being negated by the bullish signals of yesterday, being confirmed on Thursday. With the stochastics in the oversold condition starting back up, the probabilities indicate that an uptrend may be back in progress.

Let your profits run, cut your losses short - How is that done? Every investment advisor gives that advice freely, but very rarely do they show you or tell you how to do that. The candlestick signals make that relatively easy. Note in the ATI chart how cutting the losses can be implemented. The Evening Star signal right at the 50 day moving average would have created a Blue Ice Failure pattern.  For information on Candlestick signals and moving averages click here. The next target could have been the 200 day moving average at the $45 level. Shorting this stock at the $63 area would have produced a nice profit, approximate an $18 gain from a $63 short. This will essentially have produced a 28% profit.

What indicates closing that position? A Bullish Engulfing signal! With the market acting strong in general and a candlestick buy signal forming when the stochastics had the opportunity to curl down but instead are now moving up in a steady upward direction, it becomes time to cover that short.

The probabilities indicate this price is moving higher with this signal. The analysis reverts back to the probabilities. Why stay in a position where the probabilities are now working against you? Use the candlestick signals to your advantage. This is how you cut your losses short.

Private training session - The private training session for June 24 and 25th is full. If you would like to attend a private training session later in the summer or in the early fall, please call or e-mail us. If you would like to bring your own group for a private training session, please call, we can make arrangements that will fit everybody's schedule.

Chat session tonight at 8 p.m. ET

Good investing,

The Candlestick Forum Staff