Learn the Stock Market - Made Easy With Candlestick Signals.

How do most people learn the stock market? Usually by the seat of their pants! Unless somebody is specifically interested in how to learn the stock market, most people do not try to learn until they have to. Unfortunately, this puts most investors in a position to learn as they go.

Do you have friends or acquaintances that seem to always do well in the market? How did they learn the stock market? More than likely, they learned a trading system that worked effectively. Then they put that trading system to good use.

To learn the stock market correctly requires studying parameters that can be evaluated in all conditions of market trends. The Candlestick signals, especially the 12 major signals, provide that format.

When do most investors want to learn the stock market? Usually after it had a very strong run. Unfortunately, what most investors learn then is a function of what the markets happen to be doing at that time. What might work successfully in the last period of an uptrend may not work at all in a downtrend or a choppy trading period.

To learn the stock market successfully, parameters are required that can be identified in any market trend. The Candlestick signals illustrate investor sentiment. Being able to recognize the bullish sentiment signals and the bearish sentiment signals is the most effective method for learning how to extract profits from the markets.

When will your kids learn the stock market? Probably when they have to! Do not let this happen. Teach your kids how to learn the stock market at an early age. When they learn how to invest at a young age, when it is time for them to invest later in life, they will have background experience so they will not be making the same mistakes that most investors do when they start investing. If not Candlestick investing, expose them now to a trading method that will get them interested in investing.

Candlestick signals are filled with investment information. Learn the major signals and you'll understand how to make money in the markets immediately. That is how to learn the stock market correctly. The Candlestick signals allow an investor to evaluate stock market trends as well as any other trading entity trend. Use them to your advantage.

Market Direction - The moving averages are excellent targets for anticipating trend reversals. Candlestick signals immediately identify whether a moving average will act as support or resistance. As discussed in the previous newsletters, the Dow has supported at the 500 day moving average in the past couple of weeks.

DOW

Once it bounced from the 500 day moving average, the 200 day moving average became a viable target. The past five trading days made it obvious that the 200 day moving average was creating some resistance. A Bearish Harami, a Shooting Star signal, and a Bearish Engulfing signal were clearly visible at the 200 day moving average. Stochastics had just climbed up into the overbought area and have now turned down after the Bearish Engulfing signal. If there is further weakness from here, the 500 day moving average becomes the obvious level to test once again.

The NASDAQ is also bouncing up off of the 500 day moving average, having the potential to test the 200 day moving average or the 50 day moving average, both being in the same proximity. However, Tuesday's trading opens at the bottom of Monday's bullish candle. When this occurs while stochastics are in the overbought area, it becomes a very bearish signal, a Kicker-type situation.

NASDAQ

Any weakness seen in the markets on Wednesday should be used as an opportunity to close out long positions that are not showing any strength.

Using the Moving Averages – The Dialysis Corp. of America chart reveals how to use the Candlestick signals to their full advantage. Our recommendation to buy DCAI on May 5th was the result of an Inverted Hammer being confirmed. The gap up in the price on May 4th after the Inverted Hammer was a very bullish signal. It became that much more convincing in the fact that it gapped up and traded through the 200 day moving average.

The entry strategy the following day was to buy it on strength, at or above the previous day's close. The analysis becomes simple. A strong bullish signal at the 200 day moving average makes the 50 day moving average a likely target. Buying a stock at $15 a share with the first target being $20 a share provides a good profit potential, a 33% return.

The analysis once again becomes simple for exiting the trade. Once the price has reached the 50 day moving average and stochastics have moved to the overbought condition, the Candlestick investor has some simple parameters for evaluating when to come out of the trade. Tuesday formed a Doji above the 50 day moving average.

DCAI

A lower open after the Doji would tell the Candlestick investor to take profits immediately. A higher open would be viewed with some suspect. A higher open could take the trend higher but it would be prudent to put a sell stop right at the 50 day moving average. The logic being that if it opened higher and came back down through the 50 day moving average, it would more than likely form a bearish Candlestick signal by the end of the day.

Could it pull back and then move higher? Certainly! But this is the type of investing that you are not taught when you try to learn the stock market. How to come out of trades when the probabilities indicate that is time to take profits, and how to get back in when the signals indicate that the profit-taking is over. The Candlestick signals give a much more clear format for how to come out of a position and get back in.

The moving averages add more credence when to get in and when to get out when utilized along with the Candlestick signals. The Candlestick Forum's training CD entitled “Candlestick Trades at Major Moving Averages” provides valuable information on how to use the signals more effectively. If you want gain better investment knowledge, putting the parameters highly in your favor, view the “Candlestick Trades at Major Moving Averages” training CD. The information on this CD will assist you in identifying high profit trade situations.

If you are interested in making serious profits, study how to use the Candlestick signals at the moving averages. You will see substantial earnings improvement when putting all of the parameters in the right place. Watch your money grow when utilizing statistically proven trend reversal techniques.

Thursday Night Chat Special - The chat session on Thursday night at 7 p.m. central time is open to everybody. There will be a special drawing. Because the moving averages are an integral part of dramatically improving profits, there will be a contest drawing for those attending the Thursday night chat to win a “Candlestick Trades at Major Moving Averages” CD. 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