Technical Analysis Chart Formations - An Easy Read For Candlestick Signals.

Candlestick signals simplify technical analysis of chart formations. The pending market direction can easily be identified visually. The element of dark bodies and white bodies allows an investor to interpret the daily price actions. This information, incorporated with the condition of the stochastics, becomes an immense analytical advantage.

Technical analysis of chart formations becomes critical when applied to portfolio positioning. Being able to identify market conditions topping out creates the mental preparation for taking profits. The fear of coming out of positions too early is greatly diminished. Being able to visually analyze that the market, in general, is pulling back, provides a good platform for coming out of positions.

The ability to identify major Candlestick signals provides a format for being in the right direction of the market at the right times. Technical analysis of chart formations should be a process that is done very quickly and accurately. The attributes of the Candlestick signals allow an investor to benefit from statistically proven trend reversal factors.

Market Direction - For the past few weeks, the markets trended upward. Although the Dow appeared to be getting toppy, remaining in long positions was the correct recommendation. Why, if the Dow chart was not strong, was it deemed proper to stay in long positions? The reasoning is simple when utilizing Candlestick analysis.

The overall market trend is not based on fundamental reasons. Market trends are based on the perception of fundamentals. When investor sentiment is bullish, all the indexes will move positive. When investor sentiment is bearish, all the indexes will decline. Once a trend is in existence, investor sentiment can be analyzed based on the movement of the ‘majority' of the indexes.

As witnessed in the Dow for the past few weeks, some Candlestick sell signals have appeared. The trend traded flat in the Dow. Why would this be considered a bullish trend? The analysis of the other indexes is required. During the same time frame, the NASDAQ, S&P 500, and the Russell 2000 indexes continued to move higher. Very rarely will investor sentiment be so diverse in the equity markets that one major index will be advancing while another index is declining. Although this situation can occur, the vast majority of the time the indexes will move in tandem.

The Dow

This makes the technical analysis of the index chart formations relatively easy. Trends will usually continue until all the indexes appear to confirm sell signals. All the indexes formed obvious Candlestick ‘sell' signals this past week. The Dow formed an Evening Star signal with the Hanging Man signal as the indecision day. Both the NASDAQ and the S&P 500 formed small Kicker signals during the week.

The NASDAQ

The Russell 2000 formed a Bearish Harami, which was confirmed. The evidence that selling was coming into all the market indexes revealed that investor sentiment had finally changed.

The Russell 2000

When stochastics are in overbought conditions, viewing major ‘sell' signals in all the indexes becomes a clear indication.

Exploiting the Downside Move - The recommendation in the Member Area for the past week had been to start taking profits on charts that were showing ‘sell' signals. Continue to hold the long positions until sell signals appeared. Adding a few short positions would also be prudent. This was not inspired by any great wisdom, just common sense.

The markets were showing overbought conditions. Some sectors had already had fairly good runs. Taking profits in sectors that were topping out was the logical strategy. Could those prices go higher? Certainly, but that provided a couple of opportunities for the funds that were being freed up. If the markets continued higher, positions could be bought again. Upon seeing new buy signals, the positions could be bought back. On the other hand, the evaluation that other sectors were picking up strength might provide better profit opportunities.

Upon seeing that the selling was coming into the markets, short positions would be emphasized. As seen in the Macromedia Inc. chart, the technical analysis chart formation revealed a very high probability short trade. When the analysis reveals that the markets are in overbought conditions, establishing a few short trades with excellent Candlestick sell signals modifies direction risk. Having already established a few positions to the short side, moving from predominantly ‘long' in a portfolio to relatively ‘short' is not a cumbersome process.

Macromedia Inc.

GAPS

Gaps, or Windows, become an excellent indicator for implementing option trades. When used in conjunction with Candlestick signals, option trades can produce consistently high profits. The Candlestick Forum provides very informative training CDs on how to use the gaps effectively. If you are serious about wanting to develop high profit option trading strategies, take the time to learn how to use gaps effectively.

SUMMER SPECIAL!

FREE GAPS CD!

For a limited time, buy the information packed “Gaps at the Bottom” Candlestick Forum training CD for only $69.77 and receive the “Gaps at the Top” Candlestick Forum training CD for FREE! (a $59.77 savings). The information that you will receive from these training CDs will change your investment perceptions. Gaps will become a valuable tool, not something to be feared. The simple visual training provided from the CDs will train your eyes to recognize high profit trade potential. What to you have to lose? The 45 minute training on each CD involves the recognition of forceful buying or forceful selling entering a trade trend. Utilize this knowledge to your advantage.

The Summer Special - The ‘Gaps at the Bottom' and ‘Gaps at the Top' CD special will end this Wednesday, August 10th. Take advantage of the knowledge conveyed in these informational CDs. Learn how to use gaps to your advantage. Order now! You'll be amazed at the profits that can be made when understanding how to use gaps to your advantage. Take advantage of the knowledge on these training CDs. Get your set of gap CDs now. The information that they contain have the potential of producing big profits for the rest of your investment career.

Free Training Session - Steve Bigalow will be providing a free training session on Saturday, August 20th, 2005 in Los Angeles, California. This will be a six-hour session.

Free Training Session Information

Private Training Sessions – Will there be losing trades when using Candlestick signals? Sure, but knowing how to eliminate the losing trades quickly and consistently placing funds in signals and patterns that have better probabilities make for very strong profit potential. Insights that you gain from our two-day training sessions with Steve Bigalow will pay for themselves many times over. Wouldn't you like to learn how to quickly identify the high profit potential trades? Wouldn't you like to learn how to take small losses without the emotional involvement? Utilizing Candlestick analysis allows an investor to make commonsense investment decisions. Learning how to evaluate Candlestick signals correctly will benefit your investment acumen for the remainder of your life.

The Candlestick signals and easy-to-identify trading patterns provide a format to partake in high profit trades. Your investment confidence will skyrocket when knowing how to easily find trades that put the probabilities of making profits immensely in your favor.

You will be amazed at how easy your investment perceptions will change with simple visual observations. The unique style that Steve Bigalow demonstrates for learning high probability trade analysis allows investors to produce profitable results immediately. Do not miss an opportunity to learn from one of the leading Candlestick investors in the nation.

A reminder for those interested in the August 27th and 28th private session, please confirm your plans. Seating is limited. Another session is scheduled for September. If you want to become the master of your investment future, this is an opportunity you should not pass up. If you would like more information, please contact us by email. To contact us by phone, please dial our toll free number: 1-866-251-4015. Contact us now, spaces are filling up fast.

Private Training Lesson Plan

Monday Night 'Members Only' Chat Session – The 'Members Only' chat scheduled for Monday night, August 8th, will delve deeper into finding high profit trade set-ups and option trading strategies to benefit from those moves. Members, see you Monday night at 8:00 p.m. Eastern time.

Become a Member of the Candlestick Trading Forum

Chat Room Set-Up Instructions

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