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Why
Using Japanese Candlesticks Is The Best Way
To Trade Trendless Markets
Which way is the market headed next week?
Who knows, it depends on whether the war newsclips
are showing a good day or a bad day. Is there
money being made in this market? You bet!
The bullish candlestick signals have produced
some high profit returns this week. At the
same time, the sell signals have produced
excellent short profits.
This is not unusual when trading the signals.
Going back to basics, the signals are created
by the cumulative knowledge of all the
investors participating in that investment
vehicle during that time frame. This becomes
more clear when the signals point out where
buying or selling is occurring, even when
there is no trend in the general market. The
key here is having both long and short positions
on, implemented by finding the strong candlestick
buy and sell signals.
In a market not showing any distinct trend
for a few weeks now, it is impressive to see
the results of the Stock Picks of the Day
on the site. We bring this fact to your attention
because it has even impressed our new staff
members!
The vast majority of our picks over the past
four weeks have moved with decisive profits.
Has every pick made money? Certainly not,
but the losing trades are closed quickly and
the positive trades vastly outnumber them.
The recent trades PHCC, -.4%, NLY, +1.0%,
AEM, +4.3%, URBN, +1.0%, MANT, +20.0%, CCMP,
+3.1%, RANGY, +8.3%, CHTT, +10.1%, CEGE, +11.3%,
LLL, –0.6%, AVII, –21%, WBSN, +5.3%, as examples,
are in line with previous trades and time
periods. The trades are a mixture of longs
and shorts, 12 trades in all, with 9 up 1%
to 20%, 2 basically flat and one down. And
the one loser is digesting a one-day gain
of over 46%!
This illustration is not to pound chests.
It is to illustrate that the probabilities
are always in our favor using our candlestick
analysis system. Review the trades, not so
much for the results, but for the reasons
they were executed and closed. The signals
show when and why to get into a trade and
when and why to get out. They work. Even more
so after over four hundred years of refinement.
We are gratified by the many emails thanking
us for showing profitable trades. However,
the point of this site is candlestick analysis
education. If you are using it solely for
profitable trade exploitation, you are missing
the boat. Learn why each trade is being
recommended. Visually fix the signal pattern,
along with the corresponding indicators, so
the next time you see the same setup, you
will be able to exploit a profitable situation.
This is not rocket science. This is learning
to recognize a sign. Keep in mind, rice traders
made unimaginable fortunes using these simple
visual techniques.
The Power Of A Gap Up After A Doji - Candlestick
Play Of The Week
What is a high profit pattern? The gap up
after a Doji. What does the Doji represent?
Indecision! Indecision at a level in a trend
where the bulls and the bears are at an equilibrium.
Then a gap up from that indecision. What does
a gap up represent? A massive desire from
investors to get into a position.
Look at CHTT, one of our recent picks. Note
the series of Doji’s before the gap up. A
four day period of indecision. Stochastics
showing an oversold situation, and then a
dramatic indication that the buyers have made
up their minds. This creates a high probability
trade. Simple analysis of what actually is
happening at the turn gives the investor valuable
forewarnings.
Due to its extremely high probability of success,
the "Gap Up After A Doji" is one
of our favorite candlestick patterns. Mr.
Bigalow has written an e-book entitled "Big
Profits Using Candlestick Signals And Gaps",
available in the Candlestick
Trading Publications section of our website.
One of our Members emailed us saying that
he considered this e-book to the the "most
complete treatise on how to successfully and
profitably play gaps" that he had ever
seen. Subtitled "How To Make A Living
Trading The Markets By Mastering Easy To Learn
Techniques Hardly Anyone Else Knows About",
this e-book should be in every serious investor's
library.
The Candlestick Trading Forum Chat Room
Is Live!
We held our first chat room discussion last
Wednesday evening. About 54 "chatters"
attended, with a few more dropping in and
out at various times during the evening. Due
to the many favorable responses from the participants,
we have decided to make this a scheduled event
two times a week. Our Wednesday chat will
run from 4:00 - 6:00 P.M. CST and our Sunday
chat will run from 7:00 - 9:00 P.M. CST.
Join our chat room discussions Wednesday and
Sunday nights. Use this time to learn and
ask questions. The more you experience profitable
practices, the faster you can control your
own investment future. The format is for investors
and traders wanting to become more confident
in their trading, and to be refreshed on signals
and patterns. These sessions are a time to
review candlestick concepts as well as to
share with other members where other vital
investment information can be found on the
Internet.
To take part in the Chat Room, go to our website
and click on "Enter The Forum".
It may ask you to set up a username and password.
If you are prompted for this, please note
that this is NOT the same as your Candlestick
Trading Forum username and password. So you
may want to log on early to get that set up.
Once you are in the Forum, click on "Chat!"
(on the right hand side of the screen above
all the Forum postings). The system may then
prompt you for a name to be used in the chat
- enter whatever you want there. Looking forward
to seeing you in the Chat Room!
Mr. Value Is Providing Secret Information
- And Explosive Profits - In The Forum
Mr. Value has been contributing some excellent
breakout situations through Daryl on the Forum.
For those of you that are not familiar with
Mr. Value, he is an analyst who has been working
with one of the nation's leading money-management
firms. His research capabilities have produced
recommendations of companies whose stock price
has not yet reflected the fundamental improvements
the company has experienced. The combination
of his uncovering tremendous growth potential
companies, added to the timing that is contributed
by candlestick analysis, makes for a powerful
long term investment program.
Also, keep watching for the Quiz of the Week
in the Forum. We are offering one of our e-books
for free to the first person who can answer
our question related to candlestick chart
patterns. Have fun while learning a highly
profitable trading system!
Take advantage of the fun and knowledge being
passed back and forth in the Forum area of
the site while you still can. To enter the
Forum, go to the Candlestick
Trading Forum Home Page and click on "Enter
The Forum".
A Sector We Like this Week
The whole Gold Stock sector did a Bullish
Engulfing pattern on Friday. Three of our
current recommendations are coming from that
sector. Should be some good money made there
this week!
Why Now Is The Best Time Ever To Become
A Candlestick Trading Forum Member
We sincerely hope that you are starting to
get the message about why we think our simple,
easy to learn system, developed from over
15 years of research, is also one of the most
powerful systems available in the investment
arena today. We have reviewed hundreds of
other systems and methods for making money
in the markets. We have read hundreds of books
about trading and investing. After all that
study, we have chosen to stay with our system.
A system that anyone can learn in 60 days
or less.
We have just not seen another system that
can provide an 80 - 95% probability of a successful
trade, as ours can do.
We are now closing in on triple-digit returns
for the past 13 months (unaudited and uncompounded).
Many people have told us that this was impossible
to do in the market we have been faced with
over that time. All we can say is "check
out our picks - they are all posted on the
site, and see for yourself".
We would be glad to let you know how you can
be part of this program. For more information,
please read about becoming a Member in the
Become
A Member! section of our website.
In Conclusion...
Well, that about wraps it up for this issue.
If you have read Steve's book “Profitable
Candlestick Trading”, you should have
gleaned that Candlestick Analysis is not difficult.
Too many people try to read more into it than
they should. It is easy. Use our knowledge.
Use the Forum to ask questions or see what
others are doing to improve their investing
capabilities. The more investors that become
adept at candlestick investing, the more profits
the candlestick investing community will make
together!
Good Investing,
The Candlestick Forum Staff
www.candlestickforum.com |
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