Short Term Stock Trading With Candlestick Signals.

Short term stock trading is dramatically enhanced when utilizing Candlestick signals. Not only do the signals reveal high probability reversal levels, they allow the investor to analyze the directional forces of the markets. Having the ability to project the market trend with a relatively high degree of accuracy is vital for profitable short term stock trading.

Candlestick signals are highly relevant when viewed in overbought or oversold conditions. They are also relevant for identifying the nature of a trend. This information is critical for the short term stock trading investor. Evaluating what the signals are indicating at important support or resistance levels greatly improves the ability for identifying market direction. However, the appearance of Candlestick signals, that contradict the assumed market direction, allows the investor to quickly alter their short term stock trading strategy. The appearance of a Candlestick signal, aborting the projected current trend, will usually verify new market conditions.

That could be plainly seen in the trading direction of the Dow this past week. Last Thursday, the Dow formed a Spinning Top right at the 200 day moving average. Friday confirmed the support of the 200 day moving average with a bullish candle. The analysis of the market trend at that time would have been easy had the Dow come up and tested the 10,700 level and failed. However, the pullback was probably going to terminate on seeing the support at the 200 day moving average. That new strength would have provided a market projection of the trend continuing up to test the 10,700 level again and possibly breaking through. The stochastics curling up made this evaluation very viable.

Then a tropical storm moves to a category five hurricane in one day. The Bearish Engulfing signal the next day illustrates a change of investor sentiment. The previous analysis of an uptrend testing the recent highs becomes negated. The new investor sentiment is demonstrated with a new Candlestick signal. Stochastics turning back down reveal the potential of a downtrend moving to the next logical support level, the recent lows of August. The Candlestick signals indicate a negative bias that was started with a Bearish Engulfing signal. Once that sentiment has reached the oversold condition, with all the bad news built into the trend, the next ‘possibilities' start coming into the trend. The Candlestick signals provide a visual map of what investor sentiment is doing. That sentiment can then be attributed to whatever is being touted as the reason for the market move.

Market Direction - After the Hurricane Rita sell-off, the Dow moved toward the oversold condition. Thursday and Friday showed bottoming action as it bounced off of the same level that the Dow bounced off of in late August. These bottoming signals were attributed to the fact that Hurricane Rita was starting to lose strength, and may not be a category five hurricane when it hits shore. Also, the path of the hurricane appeared to be missing some of the major refineries. If the hurricane turns out to be much less destructive than first anticipated, the buyers should come back into the market. The S&P 500 formed a Spinning Top on Thursday while the low just touched the 200 day moving average. The Russell 2000 showed bottoming signals right where it bottomed in August.

The Dow

Sector Strength - The heavy construction sector has been acting very well as can be expected with all of the infrastructure that needs to be rebuilt in the South. Also, the textile manufacturers have been performing well. As can be anticipated, large quantities of clothing will need to be bought in the hurricane areas.

Knowing that these sectors are getting investment dollars coming into the sector in general, the next logical step is to find the chart patterns in those sectors that have good buy signals.

As can be seen in the Sterling Construction Company chart, after the initial strong uptrend, the Dark Cloud signal illustrated the potential of a pullback. That pullback ended with the appearance of a Bullish Harami. The profit-taking was over. The buyers should be stepping back in once again. Having the ability to identify the end of an uptrend and the end of a downtrend can greatly improve trading profits. Also, the possibility of a J Hook pattern forming allows an investor to project where the upside target may be.

STV

Hurricane Rita - The next member chat session, Monday night, will discuss how a very simple money management program will take all of the emotional aspects out of your investing. The Thursday night session will demonstrate some simple processes for selling at the correct times, whether taking profits or stopping losses. These sessions will be either this coming week or the following week, depending on the electricity availability in Houston.

Autumn Special - Gaps represent enthusiasm to get into a position to the point that investors will pay prices away from any of the trading range of the previous day. Understanding how to exploit the information that a gap reveals provides opportunities to make huge trading profits. Order the training CD “Gaps at the Top” or the training CD “Gaps at the Bottom ”at $69.77 and select your choice of any other Candlestick Forum training CD, up to an $88.77 value, for FREE!  The 'Gaps' training CDs will provide valuable insights on how to use Candlestick signals more effectively. You choose the CD that you would like in addition to the “Gaps at the Top” or "Gaps at the Bottom" CD.

Autumn Special

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.

October 1st and 2nd will be the next training session. The September session is filled. If you are interested in getting highly profitable insights on how to use Candlestick signals successfully, two solid days with Steve Bigalow are very worthwhile. The information you'll get from one of the sessions will pay for the session many thousands of times over. Seating is very limited.

If you would like more information on the training sessions, please contact us by email immediately. We will provide you with all the information you require for attending the next class. 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 next Monday night chat for members hopefully will be on September 26th depending on whether we have electricity here in Houston. The topic will be "Money Management". Members, we'll see you Monday night at 8:00 p.m. Eastern time.

Become a Member of the Candlestick Trading Forum

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