Learning the Stock Market - Made Easy With Candlestick Signals
How do most people learn the stock market? Usually by the seat of their pants! Unless somebody is specifically interested in how to learn the stock market, most people do not try to learn until they have to. Unfortunately, this puts most investors in a position to learn as they go.
Do you have friends or acquaintances that seem to always do well in the market? How did they learn the stock market? More than likely, they learned a trading system that worked effectively. Then they put that trading system to good use.
To learn the stock market correctly requires studying parameters that can be evaluated in all conditions of market trends. The Candlestick signals, especially the 12 major signals, provide that format. The candlestick charts make the analysis of trends very easy.
When do most investors want to learn the stock market? Usually after it had a very strong run. Unfortunately, what most investors learn then is a function of what the markets happen to be doing at that time. What might work successfully in the last period of an uptrend may not work at all in a downtrend or a choppy trading period.
To learn the stock market successfully, parameters are required that can be identified in any market trend. The Candlestick signals illustrate investor sentiment. Being able to recognize the bullish sentiment signals and the bearish sentiment signals is the most effective method for learning how to extract profits from the markets.
When will your kids learn the stock market? Probably when they have to! Do not let this happen. Teach your kids how to learn the stock market at an early age. When they learn how to invest at a young age, when it is time for them to invest later in life, they will have background experience so they will not be making the same mistakes that most investors do when they start investing. If not Candlestick investing, expose them now to a trading method that will get them interested in investing.
Candlestick signals are filled with investment information. Learn the major signals and you'll understand how to make money in the markets immediately. That is how to learn the stock market correctly. The Candlestick signals allow an investor to evaluate stock market trends as well as any other trading entity trend. Use them to your advantage for learning the stock market.
Market Direction - The moving averages are excellent targets for anticipating trend reversals. Candlestick signals immediately identify whether a moving average will act as support or resistance. As discussed in the previous newsletters, the Dow has supported at the 500 day moving average in the past couple of weeks.
Once it bounced from the 500 day moving average, the 200 day moving average became a viable target. The past five trading days made it obvious that the 200 day moving average was creating some resistance. A Bearish Harami, a Shooting Star signal, and a Bearish Engulfing signal were clearly visible at the 200 day moving average. Stochastics had just climbed up into the overbought area and have now turned down after the Bearish Engulfing signal. If there is further weakness from here, the 500 day moving average becomes the obvious level to test once again.
The NASDAQ is also bouncing up off of the 500 day moving average, having the potential to test the 200 day moving average or the 50 day moving average, both being in the same pro