What is the main purpose of technical analysis? It is the visual evaluation of chart patterns that reveal high profit situations. Candlestick signals provide the ultimate technical analysis tools for identifying price reversals. Understanding how to use the Candlestick signals effectively allows an investor to master the markets. Technical analysis tools should be easy to use and have a high-probability expected result.

Using Candlestick signals with other technical analysis tools dramatically enhances trend analysis capabilities. Where other technical analysis tools provide a format for anticipating what ‘might’ be a price reversal area, the Candlestick signals provide the information that demonstrates exactly what is going on at those levels. The results of hundreds of years of actual use make Candlestick signals one of the most effective technical analysis tools.

The news media can be your first source of where to apply technical analysis tools. The Candlestick signals identify the result of investor sentiment. As has been seen for the past two months, Crude Oil prices were the main concern. Of course, high gasoline prices were going to be a big damper on the American economy. The media was reminding us of that fact over and over. Now there is a new fear! Natural Gas prices! Heating our homes through a cold winter is going to deplete the American family’s budget.

The media has now targeted the next fear factor. However, having the ability to analyze the price trends of other factors that may cause positive or negative sentiment in the equities market becomes a valuable technical analysis tool. The Candlestick signals can be utilized for analyzing any trading entity that involves fear and greed.

Natural Gas

Market Direction - The immense advantage that Candlestick signals provide is the capability to visually witness what a trend might be doing at important technical levels.
The evaluation of what the Dow might be doing becomes much easier to visualize when applying Candlestick signals to other technical analysis tools. As seen, the Bullish Harami stopped the downtrend right at the previous lows of late August. Stochastics were in the oversold area starting to curl back up. What would have been the logical target? The 10,700 level that seems to be the resistance area, creating a trend channel.

The Dow


However, the moving averages were the first target. Prior to reaching the level of the moving averages, they may have been evaluated as being a possible congestion area. Viewing the moving averages back through mid-August, they revealed some congestion at those levels but the trend eventually moved through them. The Candlestick signals allow the investor to actually see what is occurring when the moving averages are tested. In the case of the Dow, a small Hanging Man signal was followed by a Bearish Engulfing signal. These were reversal signals. This is stated to point out that there could have been some selling or congestion on the moving averages where the formations were not actual signals. The fact that Candlestick “sell” signals formed at these levels provides a completely different analysis. The expectation of a reversal at the moving averages becomes that much more anticipated than if non-signal selling days had occurred at the moving averages.

The same could be seen in the NASDAQ chart. As the NASDAQ came back up to the 50 day moving average, it formed a Shooting Star. Not only was this a potential sell signal, but the fact that it gapped up slightly and then formed a Candlestick ‘sell’ signal was that much more of a forewarning that the 50 day moving average was going to act as resistance. This becomes further confirmed the following day with a Bearish Engulfing signal. Although the stochastics had not reached the overbought area, the analysis has to take into consideration that the Candlestick signals are the predominant analytical tool.

The NASDAQ


When a ‘sell’ signal occurs right at a major technical level, such as a moving average, those factors should well override the conditions of the stochastics.

The NASDAQ has currently formed a Doji/Harami as it bounced at the 200 day moving average. This should indicate that the bottom is near. The Dow has formed a Long-legged Spinning Top, followed by an Inverted Hammer. These signals have occurred at the same level where the Dow bottomed in early July. Be prepared to buy positions on seeing new strength coming into the markets at these levels.

Learning how to evaluate what the Candlestick signals are telling you can provide huge profits for investment accounts. Being able to apply what Candlestick signals are revealing at important technical levels dramatically enhances the probabilities of being in correct positions at the right times.

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 two days in private training sessions educating investors how to use the Candlestick signals affectively. Although you may learn a lot of information through his books and the website information, you will solidify your understanding of how to use Candlestick signals profitably in his two-day training session.

Our private sessions are composed of a small group, 2 to 4 people. The small group environment works very effectively for speeding up your learning process. Questions that one person asks are usually what everybody would eventually ask. A signal or a pattern that is illustrated and explained might be better clarified by another member of the group after adding their explanation.

Having the ability to ask questions and have them immediately answered dramatically speeds up the learning process. The two-day session is a 'brain frying' learning process. However, unlike other investment training programs, you will still have full access to Mr. Bigalow after the sessions are over. His primary objective is to teach you how to use Candlestick signals profitably. Whether this process takes two days, two weeks, or two years, you will learn how to make big profits using Candlestick analysis.

If you would like more information on the October 22nd and 23rd 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 will be on October 10th. Members, we'll see you Monday night at 8:00 p.m. Eastern time.

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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