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Stockmarket Charting Techniques

 

The best stockmarket charting method is candlestick signals and patterns. There are a number of available stockmarket charting tools but candlestick signals are the quickest to learn. Considering the amount of time required to learn to read stockmarket charts why not choose to accelerate your education process with Japanese Candlestick charts.

Charting, or ‘technical analysis’, involves interpreting the performance of stocks, currencies, commodities, and other financial data. The analysis of past performance should quickly identify signals or patterns to assist the investor on future price potential. That is why we focus on Japanese Candlesticks for a quick visual depiction of price projections based upon proven patterns.

Using Candlestick Signals easily tells investors which stockmarket charts are poised for strong moves and which may remain relatively flat during the current market. Once an investor has identified these trades, it is a shorter process of elimination to determine which trade offers the best possible rate of return.

Stop contributing to the purses of the professional money managers! Quit being on the wrong side of the trade. Don’t believe in the Holy Grail of trading strategies.
Keep it simple – learn the 12 Major Candlestick Signals for reading stock chart patterns. You don’t need to hunt for ‘secret’ trading techniques. Professionals have used the Japanese Candlestick signals for many years to determine the stockmarket. We provide page, upon page, of free signal examples and trading criteria. Additionally, Stephen Bigalow provides a free weekly Webinar to continue his commitment to the Candlestick Community.

MATCHING LOW

Description

The Matching Low pattern is similar to the Homing Pigeon patter, the exception being that the two days of the pattern close on their lows, at the same level. After a long downtrend, recognizing that the price has closed at the same level without going through is an indication to the bears that the bottom has been hit.

Criteria

  1. The body of the first candle is black; the blody of the second candle is black.
  2. The downtrend has been evident for a good period. A long black candles occurs at the end of the trend.
  3. The second day opens higher than the close of hte previous day and closes at the same close as the prior day.
  4. For a reversal signal, further confirmation is required to indicate that the trend is moving up.

Pattern Psychology

After a strong downtrend has been in effect and after a long black candle, the bulls open the price higher than the previous close. The shorts get concerned and start covering. However, the bears sitll have enough control to close the price at the low of the day, the low being the same as the close of the previous day. The psychological impact for hte bears is that it couldn't close below the previous close, thus causing concern that this is a support level.

 

 

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