High Profit Stock Investing With Candlestick Signals.

Stock investing becomes greatly simplified when utilizing a proven trading strategy. Candlestick signals provide that format for successful stock investing. Whether analyzing the markets in general or specific trading entities, being able to evaluate visually what a trend is about to do becomes a highly profitable asset. Although Candlestick signals were developed trading commodities, they work extremely successfully when applied to stock investing.

Candlestick signals provide a leverage factor for stock investing. Being able to visually analyze the direction of the market indexes is the first major advantage. Next, specific sectors/industries can be analyzed. Evaluating that the markets may have produced a bottom reversal and starting an uptrend provides a format for searching for which sectors are producing strong bullish signals. To maximize profits when stock investing, the Candlestick signals identify which sectors may be leading the next market rally.

Once those sectors have been identified, it becomes a simple stock investing process to do a search for the best bullish signals being formed in individual stocks in those sectors. This search process aligns all the probabilities of being in the strongest stock moves. The purpose of stock investing is to maximize profit with the minimal amount of risk.

The major signals become a valuable source for identifying potential market reversals.

While other technical investors analyze parameters that “could” possibly be representing a reversal, the Candlestick investor has that visual information much more clearly available. The Candlestick signals become an important analytical tool for successful stock investing.

Market Direction - As would be expected, after a steady market rally for the past month, especially in the NASDAQ, some profit-taking should be anticipated. Up until the last few days, being able to analyze that there was no severe sell signals forming in the NASDAQ, while the Dow was showing some toppy signals, would have been evaluated that the mass selling sentiment had not come into the markets, the uptrend was persisting.

It can be assumed that the markets are not selling off if one index is still moving positive when the other index appears to be running out of steam. Logic dictates the downtrend will not start until selling, via Candlestick sell signals, is witnessed in both the Dow and the NASDAQ at the same time.

Friday's sell-off produced a bearish candle in the NASDAQ but not a Candlestick “sell” signal. The Dow formed an Evening Star signal on Friday. This is the second evening star signal formed in the Dow over the past six trading days. What should this indicate? That the buyers are starting to run into selling pressure. If one Candlestick signal pattern represents a potential reversal, then two signals provide that much more credibility.

DOW

NASDAQ

How should this scenario be evaluated, the NASDAQ forming a bearish candle but not a signal? At the same time, the Dow displayed a Candlestick sell signal. A simple evaluation would be that a pullback is about ready to occur. The Dow chart provides some easy targets, the moving averages. It would be conceivable for the Dow to pull back to the 50 day moving average, the dark blue line.

The NASDAQ could also pull back to a moving average. The first target should be the 20 day moving average. The 200 day and then the 50 day moving averages are potential targets after that. However, it should be anticipated that these markets are in a profit-taking pullback versus a full-fledged reversal. Why that anticipation? First, the Dow appears to have some support levels not too far below the current trading. Second, the NASDAQ has not done a Candlestick sell signal, just a bearish candle.

In either case, the markets have a high probability of a pullback. Where will that pullback go? The moving averages are likely targets. But since the probability is extremely high that there will be a pullback, prudent stock investing should dictate taking some profits, maybe adding some short positions, and watching for “buy” signals at the support levels.

A short-term pullback is anticipated but there is no guarantee of how far the pullback may go. Take profits in charts that are showing sell signals. Whether the market pulls back for three days or three weeks, positions can be put back down then.

EVENING STAR
(Sankawa Yoi No Myojyo)

Description

The Evening Star pattern is a top reversal signal. It is exactly opposite the Morning Star signal. Like the planet Venice , the evening star, it foretells that darkness is about to set or that prices are going to go lower. It is formed after an obvious uptrend. It is made by a long white body occurring at the end of an up-trend., usually when the confidence has finally built up. The following day gaps up, yet the trading range remains small for the day. Again, this is the star of the formation. The third day is a black candle day and represents the fact that the bears have now seized control. That candle should consist of a closing that is at least halfway down the white candle of two days prior. The optimal Evening Star signal would have a gap before and after the star day.

Criteria

1. The uptrend has been apparent.
   
   
2. The body of the first candle is white, continuing the current trend. The second candle is an indecision formation.
   
   
3. The third day shows evidence that the bears have stepped in. That candle should close at least halfway down the white candle.

1. The longer the white candle and the black candle, the more forceful the reversal.
   
   
2. The more indecision that the star day illustrates, the better probabilities that a reversal will occur.
   
   
3. A gap between the first day and the second day adds to the probability that a reversal is occurring.
   
   
4. A gap before and after the star day is even more desirable. The magnitude, that the third day comes down into the white candle of the first day, indicates the strength of the reversal.

A strong uptrend has been in effect. The buyers can't imagine anything going wrong, they are piling in. However, it has now reached the prices where sellers start taking profits or think the price is fairly valued. The next day all the buying is being met with the selling, causing for a small trading range. The bulls get concerned and the bears start taking over. The third day is a large sell-off day. If there is big volume during these days, it shows that the ownership has dramatically changed hands. The change of direction is immediately seen in the color of the bodies.

Private Sessions - The summer months are a good time to relax and get away from the markets for a while. They are also an excellent time to educate yourself on better trading techniques. Mr. Bigalow provides private group training sessions during the summer. These sessions consist of two to four people. The benefit derived from a two-day information packed training session is highly beneficial. The investor, that is serious about learning the Candlestick investment technique, should take advantage of these personalized training sessions.

The format of two to four people creates a strong learning environment. The individual attention to each person's questions help solidify visual recognition of the Candlestick signal parameters. Investors will see amazing results in their investment perceptions very quickly.

When investors leave these training sessions, they will immediately improve their investing. How they look at investment opportunities will be dramatically altered. But it does not stop there. The two-day training is just the beginning. When an investor leaves the training session, they are not on their own. They receive the 12 CD major signal training package FREE. They also receive six months of access to the Candlestick Forum web site for FREE. This provides the opportunity for an investor to have personal access to Mr. Bigalow to continue the clarification of what they have learned. Some people need it, some people don't. But it is always there for an investor to become fully enabled to master Candlestick analysis.

There is one spot available for the June 25th and 26th session. There are sessions being scheduled for late August and early September. You will not be disappointed in the information you gain from one of these sessions. Your investment abilities for trading in any market will be vastly improved. The sessions fill up fast. Act now to assure yourself a spot. For more information call the toll free number, 1-866-251-4015, or contact us by email.

Private Training Lesson Plan

Thursday Night Stock Chat Session - The next Thursday night chat session scheduled for June 9, 2005 will be canceled this week due to a travel conflict. Also, for those that could not get into the last session because the room was full, our apologies. We are now in the process of expanding the room capacity.

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