Investing in the stock market requires having a trading program that has accountability. Most investors, when invested in the stock market, do not have any program. They buy stocks based on a multitude of investment input. The problem with this approach is that there is no program for when to get in and when to get out. Investing in the stock market requires a trading format that can be analyzed after both good and bad trades.

Most investors don't have an exit strategy for a trade that does work and especially for a trade that does not work. The lack of that information makes investing in the stock market more hit or miss. Using the analysis of Candlestick signals allows an investor to quickly interpret what a price action or a trend is going to do. Once this analysis has been made, price movement that deviates from that analysis can be quickly analyzed viewing the Candlestick signals. The prime example occurred on Tuesday as the Dow came back down and tested the 200 day moving average. The bullish signal that formed late in the day in both the Dow and the NASDAQ would have prepared investors to start buying upon seeing confirming buying on Wednesday.

However, the consolidation in the morning could have been expected after a big reversal day. The fact that the sellers came in and pushed the markets back down to the 200 day moving average at the end of the day creates a completely different scenario than if the Bulls had sustained the uptrend on Wednesday. The weakness in both the NASDAQ and the Dow require a new analysis.

With the NASDAQ trading near its recent lows and the Dow trading right near the 200 day moving average, and with the Dow once again forming a Bearish Engulfing signal makes for a different evaluation. Two weeks ago, a Bearish Engulfing signal in an oversold condition meant to look for a buy signal. The Bearish Engulfing signal on Wednesday formed when the stochastics were not in the oversold condition any more.

This makes the new analysis fairly simple. Further weakness on Thursday, taking prices down through the 200 day moving average in the Dow and heading to new lower levels in the NASDAQ, while stochastics are turning back down, would indicate that more selling will probably come into this market. On the other hand, a positive trading day, such as a Bullish Harami or a Doji-type day would provide more evidence that the 200 day moving average was going to act as support.

DOW

Having the Candlestick signals to make an evaluation and using other simple technical indicators provide the Candlestick investor with a much easier view of what investors' intentions are. Thursday's trading needs to see strength above the 200 day moving average to consider holding on to any long positions.

Candlestick Training Session - Thursday night, at 7:00 p.m. central daylight savings time, there will be an open training chat session. These sessions provide examples of where and when to use Candlestick signals, what the current market conditions are indicating, and questions and answers about Candlesticks. Come join our Stock Chat tonight to see which stocks/sectors are participating the strongest in this new buying. These are free to everybody. Feel free to join us. The password is "123".

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Candlestick Training Seminar - The details for the Houston Candlestick Training Seminar can be found on the site. This two-day training, on April 16th and 17th, will provide some very profitable insights into how to use the Candlestick signals correctly. This is an opportunity to learn an immense amount about Candlesticks signals in an extremely short period of time. Use this opportunity to your advantage.

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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!

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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