Stock Trading - Making Consistent Profits With Candlestick Signals.

Stock trading becomes much easier when trend reversals can be visually identified. The Candlestick signals produce a high probability trading format. Most stock trading is done based on fundamental reasons. However, prices do not move based on fundamental reasons. Prices move based on the perception of fundamental reasons. When an investor can implement this logic into their stock trading program, or any trading entity program, producing profits becomes a much easier task.

The advantage that Candlestick signals provide for a stock trading program is statistical results. These results are the basis for identifying Candlestick reversal signals today. When patterns or signals occur an extremely high percentage of the time, they represent a function of human nature. Candlestick signals are nothing more than a graphic depiction of what human emotions usually do under certain trend conditions.

Stock trading programs can produce consistent profits when implementing Candlestick analysis correctly. The 12 major Candlestick signals identify the majority of the reversal patterns. It is often a common complaint of stock trading investors that there are too many Candlestick signals to learn. Fortunately, the 12 major Candlestick signals are all that you need to learn. They will produce 99% of all the trade analysis in investor will need.

Learning the 12 major signals simplifies utilizing Candlestick analysis. It greatly reduces the number of signals that have to be visually memorized. This process is very simple for those who want to make money. If a Candlestick reversal signal signifies a profitable situation forming, it will not take long to remember what it looks like.

An investor can dramatically improve their stock trading profits by understanding the psychology that forms the major Candlestick signals. Once these 12 signals are learned, understanding why a trend reversals occur with the signals becomes easy to analyze.

Market Direction - As described in our last newsletter, a congested area of trading does not tell much about what investor sentiment is doing. However, a great benefit of being able to identify major reversal signals during that congestion area allows an investor to prepare the portfolio for the next major move.

As pointed out previously, the Bullish Engulfing signal and the Bullish Harami are two observable signals occurring in the past few weeks of choppy trading. The fact that both of those signals occurred right on the 500 day moving average provides significant information. Although the trading of the past couple of weeks was very indecisive, being able to pull out those two major bullish signals allowed for the anticipation of a bull move.

DOW

A bounce off of the 500 day moving average made the next logical target for the Dow at the 200 day moving average. The moving averages become valuable support and resistance targets. The Candlestick signals allow an investor to get a better evaluation of what is happening at those important technical levels. The Candlestick Forum provides a one-hour CD on how to use the Candlestick signals very effectively at the moving averages.

Analyzing that the stochastics have not quite gotten into the overbought area yet makes the potential upside target the 50 day moving average. This may take a few days. Notice the congestion area prior to the break down through the 200 day moving average. That might cause more congestion once the 50 day moving average has been reached, causing a trading area between the two moving averages.

The information conveyed on a Candlestick chart with moving averages produces a highly profitable stock trading format. A bullish Candlestick signal with stochastics in an oversold condition and that signal forming right on a major moving average has much stronger implications than a Candlestick signal forming away from the moving averages.

Candlestick signals work effectively when occurring in the right conditions, but work all that much more effectively when applying moving averages. This is another parameter for putting all the probabilities in one's favor.

Interest Rates - Candlestick signals work just as effectively for analyzing what the long-term bond prices are doing. Using the Candlestick signals to analyze what other trading entities are doing gives a better perspective on what the equity markets might do.

Trends in currencies, bonds, and commodities have a tendency to move more consistently than the stock market or individual stocks. There are less outside influences in those areas compared to the stock market. This makes utilizing the Candlestick signals that much more beneficial. Once a trend starts, it will usually maintain a relatively steady course until a severe Candlestick signal is revealed.

30 Year Bond

Notice that the 30 year treasury bond chart has produced a large Hanging Man signal after a Doji, Hanging Man, and Spinning Top signal, all occurring in the overbought area. Any weakness from this level would be a good indication that the current uptrend in bond prices has come to an end. A pullback from here would logically target the 50 day moving average.

Having the ability to visually analyze that interest rates may be moving up slightly over the next few weeks now becomes an analytical input when evaluating what the equity markets might do. Will a couple of weeks of interest rates trending higher affect the direction of the Dow and the NASDAQ? Not necessarily, but at least it becomes an analytical tool to project what the direction or magnitude of the direction in the stock markets might do at potential support and resistance levels.

The more information that an investor can put into their stock trading analysis, the better an investor can anticipate the timing and/or the magnitude of a Candlestick reversal signal. This month Crude Oil prices may be the determining influence. Next month interest rates may come to the forefront. Use the Candlestick signals to analyze whatever appears to be influencing investor sentiment.

Open Chat Session - There will be an open chat session Thursday night at 7:00 p.m. central time. This session will discuss how to anticipate which positions have the potential of a big upside or downside move. The Candlestick signals, with some simple confirming indicators, make this process very easy. Come join us.

Stock Chat Set-Up Instructions

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