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Stock Investing For Dummies - Learn Quickly With Candlestick Signals.
Everybody at one time or another feels like they need ‘Stock Investing for Dummies.' Some investors go for years and years listening to advice from the next professional adviser that they hope will do better than the previous one. This is usually the process of stock investing for dummies, a constant search for somebody that can help an investor make money in their account.
If an investor wants to get out of the cycle of feeling that they need the ‘Golden Goose' course that teaches stock investing for dummies, the process is very simple. Learn a trading method that works. Does it have to constantly work? No, but the idea is to find a trading method that puts the probabilities in the investor's favor. Without remaining with a consistent trading program, when things aren't working, a trading program should be able to be analyzed. When something's broken, it can be fixed. Moving to another trading program when things aren't working never allows an investor to understand what was wrong and what needed to be fixed. Candlestick analysis is the common-sense utilization of proven investment techniques. Learn how to invest properly using high-probability signals and your investment acumen will be improved for the remainder of your investment career.
Gap-up Stock Trading - The emphasis has been put on gap-up stock trading for the past few weeks during the Monday night and Thursday night chat sessions. The reason for educating investors on gap-up stock trading is simple. Gap-up stock trading, after the appearance of a bullish Candlestick signal, produces extremely high probability, high profit trades. Utilizing Candlestick analysis to interpret a gap-up is relatively simple. Investors want to get into a position with great enthusiasm.
Witnessing a Candlestick buy signal in oversold conditions illustrates a change of investor sentiment. Witnessing a gap-up in price, after the bullish signal, illustrates that not only has the investor sentiment changed, it has changed with great strength. Finding a trade that has shown a reversal and a new trend starting with great fervor is exactly what investor should be looking for.
Applying all of the indicators that reveal a high probability reversal is the first step for a finding a high profit trade. Those indicators, followed by a gap-up, demonstrate an additional reason for committing investment funds. EENC is an example of a chart that has all of the indicators in alignment.
EENC

A quick evaluation can be made visually. The most important indicator is the formation of a potential Candlestick buy signal, a Hammer signal. A Hammer signal is formed with the stochastics in the oversold area, starting to curl up. That becomes the criteria for analyzing whether this chart pattern has a high profit scenario.
The 50 day moving average becomes an important factor. Visually, it can be analyzed that the bullish candle breakout of early June was the beginning of an uptrend. It breached the 50 day moving average. The uptrend continued with relatively good strength until the appearance of a gap-up at the top. A Hanging Man formation appeared, indicating that the top was close at hand. The pullback came right back to the 50 day moving average as the stochastics came into the oversold condition.
The pullback coincides with the 50% retracement of the Fibonacci numbers. A wave one move appeared from early June until early July. A potential wave two pulled back to the 50 day moving average. A strong buy signal has now occurred, possibly starting wave three. Wave three usually has the same magnitude move as wave one. $29 to $30 now becomes the next potential target.
Once the eye becomes trained to identify high profit trades, the analysis of this chart becomes almost instantaneous. The signal created during the last couple of days warrants investigating the chart pattern further. The remaining criteria can be evaluated in less than a minute. Learning the parameters that create high profit trade situations becomes relatively easy. Having the capability of identifying high profit signals eliminates the need for “stock trading for dummies.”
Market Direction -
As mentioned in the morning comments, upon seeing the strength coming into the markets early required the buying to continue into the close. Although potential reversal signals were forming in all the indexes, the stochastics had not quite reached the oversold condition. This made for a fairly simple investment strategy. Had the market remained strong into the close, it would have been time to start covering short positions. However, with the stochastics not quite to the oversold condition, the implication was that the selling over the next few days was probably going to be mild.
The Dow
The NASDAQ, S&P 500, and the Russell 2000 still have some downside potential before the 50 day moving average is tested. The Dow, on the other hand, already tested the 50 day moving average on Tuesday. The bounce up from there was an indication that selling in the market in general was going to be mild. The 50 day and 200 day moving averages have a high probability of being a support level for the Dow.
The NASDAQ

If the Dow trades relatively flat while the other indexes come back to test the moving average, it will be an indication that the markets are in a resting stage, not a full-scale sell-off. These market conditions make holding long positions in strong sectors viable while at the same time owning short positions in other sectors.
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 half-day session. Everybody is invited.
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 15th, will demonstrate how to identify high profit patterns. Some recent chart patterns have produced some extremely profitable trade set-ups. Option strategies will be investigated for maximizing profits while reducing downside risk. Additionally, commodities will be evaluated. Some excellent reversal signals are starting to occur in a few of the markets. Members, see you Monday night at
8:00 p.m. Eastern time.
Become a Member of the Candlestick Trading Forum
Thursday Night Open Chat Session - Everyone is invited to attend our Thursday night chat sessions. Please tell all of your friends! The next Open Stock Chat will be scheduled for Thursday night, August 11th, at 8:00 p.m. Eastern time.
Chat Room Set-Up Instructions
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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
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