Where do most investors get their stock market education? They are usually trading by the seat-of-the-pants. There is no educational institution that can teach an investor how to invest correctly. The stock market education that most investors receive in the classroom usually instructs us about what is available; what stocks are, what bonds are, what commodities are, etc. There isn’t usually a teacher or professor that has decided to leave the high profits of successful investing to go into teaching.

Stock market education has to be learned by experimentation and by learning what to do to identify and take advantage of profitable trades. For some investors this may take years. For many investors, it can never be learned. The reason is very simple. Making rational decisions with our investment funds cannot be filtered out from human emotional reactions.

Understanding how human emotions work contrary to the correct investment decision-making process becomes a valuable asset. The Candlestick signals are the graphical depiction of those human emotions. Being able to identify panic selling and exuberant buying, by viewing a chart and analyzing price movements, will become a huge benefit when it comes to obtaining a solid stock market education.

Making money in the stock market is not a given. The consistently profitable investor has taken the time to learn from other people’s success. This is where Candlestick signals become your greatest advantage. The signals are the results of centuries of utilizing graphical formations that reveal highly successful reversal situations.

Candlestick Trading Hedge Fund - The Candlestick Trading Hedge Fund should also be used to improve your stock market education. Unlike most funds, the positions, as well as the reasoning for placing those positions, will be available to the members of the Candlestick Forum. This transparency will provide a couple of additional benefits for the Candlestick Forum website. It will provide a much more defined entry and exit explanation for positions that are being recommended. Actual positions can be monitored from entry to exit along with the reasoning for buying and selling that trade.

The Candlestick Forum website has always maintained a high level of dedication to teaching people how to use Candlestick signals correctly. Clear explanations about why positions were put on or not put on will produce a much higher comprehension level on the thought process behind each trade.

Additions to the Candlestick Forum staff will include more research personnel who are capable of investigating what companies do. This additional research will be available on the website. It will include more in-depth study on the reasons why Candlestick signals reveal when particular sectors start to bottom out and show buying signals. Once those signals are identified using Candlesticks, studies done on that sector should reveal why new buying is starting to come in and which of the stocks in that sector have the best upside potential.

Side effects of the Candlestick Trading Hedge Fund will result in new services on the website. The long-term investor, holding positions of six weeks or longer, will be provided with more recommendations, along with the research behind those recommendations. Prospectuses are still being sent out. If you have not requested one yet and would like to take a look, please contact us. Please include your name, address, and phone number, and we will send it out immediately.

Market Direction - The stochastics for the Dow and the NASDAQ have been in the oversold condition since the first week of January. Tuesday's trading formed a Morning Star signal in the Dow. Monday revealed an Inverted Hammer and Tuesday formed a Bullish Engulfing Pattern that closed more than halfway up the dark candle from Friday. This three-day combination shows a Morning Star-type signal with the stochastics in the oversold area starting to curl up. The logical target now becomes a test of the 50-day moving average. If it moves up to that level, we would evaluate at that time whether there was enough strength in the signals to push through the 50-day moving average. If we see weak signals at that point, it could be anticipated that a failure at the 50-day moving average would now take us down to the 200-day moving average.

The DOW

The NASDAQ formed a Doji/Harami on Tuesday. A positive open on Wednesday would be confirmation that the selling had stopped. Bullish futures on Wednesday morning should make for some aggressive buying opportunities. Although the 50-day moving average may be an extended move from here, there is a gap from four days ago that could be filled.

The NASDAQ

A test of these levels should provide two or three days of positive trading. That is usually enough time when identifying some good bullish signals in individual stocks to make a decent profit on a short-term trade. There were several stocks that were showing very strong Candlestick buy signals off of the 50-day or 200-day moving averages over the past few days.

STN for example, one of our buy recommendations of last week, is supported very well on the 50-day moving average. When a support level becomes obvious and Candlestick buy signals become evident at those levels, the probability of being in a correct trade becomes extremely high. This is nothing more than observing Candlestick buy signals at the same levels where other technical investors would be watching to see if that level was going to support or not. The advantage of the Candlestick signals is that they immediately reveal what the investor sentiment is doing. This allows the Candlestick investor to have a better view of what is happening at important levels.

STN

Learning Technical Analysis - Candlestick Signals enhance the results of all other technical analysis. Understanding what other technical traders are watching for when making decisions on when to get in and out of trades becomes a valuable "alert system” for the Candlestick investor. Having the ability to identify important levels occurring in trends and trend reversals greatly expands the probabilities of being in a correct Candlestick trade. This is nothing more than putting knowledge to your advantage.

The Candlestick Forum highly recommends the educational training program of the Intelyze Interactive Technical Analysis Company. If you are interested in learning the other technical analysis methods to enhance your Candlestick trading returns, the Intelyze training program is a must. If you are the type of person that wants to use all of the common sense investment parameters to your advantage, the information provided in this training program will be well worth your while. This program is very easy to follow and understand. It acts as a source of information about what most technical investors utilize in their investment decisions. Applying Candlestick signals to the same information dramatically enhances the probabilities.

The 12-CD Candlestick Training Special - The response to the 12 major signals CD training program has been much better than expected. There has been strong feedback that the in-depth analysis of each major signal is done in a clear and concise manner. The learning process becomes very easy when all the elements of what makes for a strong successful reversal signal to work correctly is explained by Stephen W. Bigalow. Each 45-minute training session not only explains what indicators confirm the effectiveness of each of the major signals, but it goes into the investor psychology that was present that made each signal occur. Understanding the psychology of investors when a reversal is occurring is a tremendous insight into what makes prices move. If you have a few weeks at the beginning of the year to get yourself organized going into 2005, then take advantage of a special year-end offer so that you can use the major signals effectively for the rest of your life.

Click Here for the 12-CD Major Signals Newsletter Special

You should never be put in a position where you do not understand why trades are being made for your account. Whether those positions are being put on in your managed account, or a hedge fund, or your own personal trading, you should have a full understanding of whether those funds are being put in the right positions at the right time. The Candlestick signals applied with Candlestick analysis will become the education process for understanding how to maximize your potential returns in your own trading or being able to analyze whether a money manager has any concept of correctly timing the markets.

Good Investing!

- The Candlestick Forum Staff

www. candlestickforum.com