Stock Market Cycles Analyzed With Candlestick Signals.

Stock market cycles are the inherent results of investor sentiment. Stock market cycles occur due to investor confidence building up and investor confidence waning. Prices do not change because of the fundamentals. Prices change based on investor perception of fundamentals. Candlestick signals are excellent analytical tools for projecting the tops and bottoms of stock market cycles.

The signals produce an immense advantage in trend analysis. Stock market cycles, when evaluated properly, produce the opportunity to make extraordinary profits from the markets. Utilizing Candlestick signals at major support and resistance levels increases the probabilities of identifying the tops and bottoms of stock market cycles.

Candlestick signals immediately identify the results of investor sentiment at important technical levels. Some of the strongest support and resistance indicators are major moving averages. Learning to use the 50 day moving average and the 200 day moving average dramatically enhances trend analysis results. These moving averages are important because they are utilized by the major money managers.

Market Direction - The Dow and the S&P 500 have pulled back to the 50 day moving average and the 200 day moving average. What does this indicate as far as trend analysis? A common rule of technical analysis is that once an important technical level is breached, prices will come back and test that level. Applying this knowledge simplifies the analysis of what the next trend move might be.

The S&P 500 indicated a Doji forming right on the 50 day moving average. Although the Dow did not show a major reversal signal, it also showed strength right on the 50 day moving average. This analysis, with the analysis of the signal formation in the NASDAQ, provides more evidence of what investors are doing. The NASDAQ formed a Bullish Harami. This, occurring when seeing support at the moving averages in the other indexes, can now be assessed as buying starting to come back into the markets.

S & P 500

The NASDAQ has been showing buy signals as it has declined toward the 50 day moving average. There have been two Bullish Harami's and a Hammer signal followed by a Bullish Engulfing signal, in the past few days. Wednesday revealed another bullish Harami as the trend has pulled back very close to the 50 day moving average. These are all indications that the downtrend has been slow and controlled.

Sector Play - One of the strongest signals in Candlestick analysis is the Kicker signal. The appearance of a Kicker signal occurring right at a major moving average is an extremely strong reversal indicator.

The Semiconductor Equipment and Materials sector formed a Kicker signal on Wednesday right at the 50 day moving average. What does this indicate?

To the Candlestick investor, this should indicate that the best stock trades should be showing up in a sector that has indicated an extremely strong reversal. If the sector index reveals a strong reversal, individual stocks in that sector should be producing some very strong signals. Finding strong Candlestick signals from a sector indicator can be applied to the strong stocks in the sector.

Notice in the Applied Materials Inc. chart that it also produced a Kicker signal at the 50 day moving average. This becomes strong criteria for entering a trade.

Applied Materials, Inc.

Any signal moving off of a moving average, when stochastics are in an oversold condition, becomes an extremely high probability trade opportunity. The moving average, that is acting as a support level, becomes more credible when being able to analyze previous actions at that moving average. As analyzed in the Applied Materials Inc. chart, the 50 day moving average was important for price action in May and July. A Kicker from this level reveals the possibility of a very strong uptrend moving from here.

Use the Candlestick signals and the moving averages to your advantage. These are where high profits are obtained from the markets. Moving averages add another element for enhancing the potential profits when witnessing a strong Candlestick signal.

End of Summer Special - Due to the importance of the moving averages when applied to Candlestick analysis, the Candlestick Forum is offering a unique special. Order the training CD “Candlestick Trades at Major Moving Averages” at $88.77and order your choice of any other Candlestick Forum training CD, up to a $69.70 value, for FREE!  The moving averages are important technical indicators. This training CD will provide valuable insights on how to use Candlestick signals more effectively. You choose the CD that you would like in addition to the “Candlestick Trades at Major Moving Averages” CD education.

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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 – The analysis of what one market can do to another is easily evaluated when using Candlestick signals. The process for projecting market direction becomes relatively easy when a Candlestick investor can utilize the signals to evaluate all the markets that might be affecting the stock market. The better one can analyze the market direction, the much greater the profit potential.

Steve Bigalow spends a good amount of time during his two-day private training sessions demonstrating how to use the Candlestick signals to accurately evaluate market trends. Adding this information to the identification of high profit signal patterns allows an investor to control the profitability of their portfolio for the rest of their investment career. Don't miss the opportunity to gain some valuable knowledge first hand. The Candlestick signals produce an immense amount of analytical information. Whether trading stocks, commodities, Forex, or tulip bulbs, Candlestick analysis will dramatically improve your profitability. This information is taught in a very easy-to-understand manner.

For those that could not attend the private training session scheduled for August 27th and 28th , another session is being scheduled for mid to late September. One seat remains available for the August training session.

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 – There is a 'Members Only' chat scheduled for Monday night, August 22nd. Steve Bigalow will be discussing the results of the Kicker signals we've seen recently in certain stocks. Members, see you Monday night at 8:00 p.m. Eastern time.

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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