Candlestick Trading Blog

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In The Tea Leaves.....Or The Rice Fields
This isn’t reading tea leaves, using a Ouija Board or Tarot Cards....the idea of stock market predictions is that many people believe that the cycles and trends in the stock market are reoccurring and that there are signals of what is going to happen. Successfully analyzing stock market indexes allows you to find the patterns and draw educated conclusions about what a particular stock is going to do, making it easier to know how to invest in the stock.

One such method of stock market predictions is the one that we believe in and teach....the Japanese Candlestick method. We believe in it so much that our name, the Candlestick Forum, is derived from this method. Learning to make stock market predictions with Candlesticks is a matter of learning how to create chats and evaluate the major Japanese Candlestick patterns. This method dates back to the 17th Century in the rice markets of Japan when a man witnessed the repetitive nature of the trade and successfully implemented his way of monitoring it. If today’s markets, Candlesticks has become a powerful tool for not only charting the daily activity of a company but also for making accurate stock market predictions and helping investors make money investing in stock.

What Is Different About Stock Market Predictions With Candlesticks?
There are a number of ways to make stock market predictions. For many people this has entailed learning how to read stock charts and listening to the latest Wall Street news. Myself, I bounced around for a number of years trying different methods and largely coming up empty. When I was introduced to Japanese Candlesticks I found its abilities to predict the stock market very compelling.

This method is made up of three things: the charts, the symbols and the patterns. In Candlesticks, the chart is really about the same as with any other method. You can set your frequency for review (usually daily) and then begin adding the symbols. Whether you are looking at stock charts with rising trends or falling ones, the chart itself is pretty much the same.

The symbols are a different matter. Each day the symbols for Candlesticks have a great deal of information included in a simple looking package. Open, close, high, low and whether to stock closed up or down are all included in one symbol. Other market systems don’t even have this much info to try and make stock market predictions....but Candlesticks has more!

Finally, these symbols are combined to create patterns. The major Japanese Candlestick patterns are repetitive combinations of the symbols and how they respond to each other over a period of time. Whether you find “Dark Cloud Cover” or a “Shooting Star” you are able to recognize these patterns and make stock market predictions based on these Candlestick chart patterns.