Stock Investing Made Easy with Candlestick Analysis.

Stock investing becomes much easier with an established trading program. Candlestick analysis is a highly productive and easy trading method for learning successful stock investing. Candlestick signals not only provide a visual alert for when a reversal is likely to occur in a trend, but the signals themselves hold an immense amount of investment information. Understanding what makes those signals work effectively provides great insights into stock investing psychology.

Once an investor understands why a signal was formed, stock investing strategies become very easy to implement. Fortunately, through the past few years, the teaching of the Candlestick signals has become greatly simplified. As you should have discovered on the Candlestick Forum website, Steve Bigalow has reduced the learning process of Candlestick analysis down to 12 major signals. Understanding the effects of those 12 major signals allows the investor to concentrate on high profit situations.

Although there are many stock investing theories and trading programs, Candlestick signals should be the basic building block for enhancing all other trading programs. The reason is that the Candlestick signals tell you exactly what investor sentiment is doing “right now”. Utilizing the information conveyed from the major signals, the analysis of potential high profit patterns becomes further enhanced. This past couple of weeks the Fry Pan Bottom pattern and the Scoop pattern have been discussed during the weekly chat sessions.

They have been illustrated because they have been producing some very profitable trades in the recent past. BOOM, for example, has produced over a 100% return this past month. ANTP provided a good 40% return and may be in the process of producing some more. These patterns become easier to identify when visually recognizing what the Candlestick signals are indicating.

The Bullish Engulfing signal was also discussed because of its importance when witnessed in the Dow this week. The Bullish Engulfing signal is one of the major signals that can produce consistent high profit situations.

The Bullish Engulfing pattern at a bottom of a trend provides significant information. Notice where the ARBA price opened when forming the Bullish Engulfing signal. It gapped down! In an extended downtrend, where do most investors panic sell? They sell at the bottom! The question becomes when everybody is panic selling, who is buying?

A Doji formed on Thursday, followed by a Bullish Engulfing signal on Friday with stochastics in the oversold condition and big volume. This is the prime set-up for a reversal. What would be the first potential target? The answer is $9, a 23% potential gain. From there, the next target is the $10 level and if it breaks through there, possibly the $12 level, filling the gap.

Will it get to any of those levels? Who knows? But the appearance of a Bullish Engulfing signal in an oversold condition and with high volume provides an extremely high probability that the uptrend should have started. Does that guarantee a 23%, 30%, 75% return? No, but it does provide a high probability of producing a profitable trade.

ARBA

Market Direction - The Dow moved up nicely from the 200 day moving average after the Spinning Top signal demonstrated some indecision at that level on Monday. The rest of the week showed continued buying until Friday. The NASDAQ produced pretty much the same scenario. Friday, however, formed a Bearish Engulfing signal in the Dow. This occurred at the recent high of the previous week. Although the stochastics indicate that they are not in the overbought area yet, the Bearish Engulfing signal in the Dow indicates that there is resistance at the 10,500 area.

DOW

The analysis of the market direction now becomes one that would indicate some consolidation in the recent trading range in both the Dow and the NASDAQ. What was needed on Friday was to see trading stay above the recent peak at the 10,500 area. Another pullback to the 200 day moving average in the Dow now becomes possible. That would represent more congestive trading for the next week or two, trading in a sideways range.

What needs to be seen to illustrate that the uptrend is still intact would be a Doji-type trading day, a Hammer, or a Bullish Harami on Monday. A dark candle day should alert investors to quickly liquidate recent long positions that are showing chart patterns of weakness.

Houston Seminar - The Candlestick signals makes evaluating any trading market very simple. The appearance of a Candlestick signal represents a change in investor sentiment in the appropriate place in a trend. A good portion of the training seminar will be dedicated to using the signals to analyze market trends effectively. When you understand what is going on with investor sentiment, you have a much greater control over your investment results. This information is made very simple to understand by Mr. Bigalow. So simple that it is highly recommended that if you are planning to attend the seminar, bring your kids. Teach them how investing works using the Candlestick signals. They will understand the concepts much better than those investors that have already had years of ineffective investment training. Allow your kids to learn how to invest at a young age so that when they need to invest, they are learning how to improve on their investment skills instead of learning them from scratch.

Click here for more information on the Houston Candlestick Training Seminar

The Major Signals Educational Package - NOW ON DVD!

The response to the 12 major signals CD training program has been astounding. 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.

A New Twist to an Old Favorite!

DVDs of the 12 Major Candlestick Signals - For those of you that would like to thoroughly analyze the 12 major signals, the signals that will perform more reversal patterns prospects than most investors will be able to utilize, the eight hours of concise analysis for each signal is now on DVD's. For the investor who likes to get comfortable in front of their TV screen, this DVD set will provide the opportunity to relax and learn at the same time.

Over $509 of valuable Candlestick signal education, for identifying the most powerful Candlestick reversal signals, is now priced at:

$397.77

Do not delay, gain the understanding of how prices move. This is information that you will be able to use for the rest of your life. The profits that this information provides can be made in your account month after month after month.

Click Here for the 12-Video DVD 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