Finding Stock Price Breakouts Using Candlestick Signals.

One of the most profitable trading strategies is identifying stock price breakouts. Stock price breakouts incorporate one simple element. Something new and dramatic has occurred in a stock price, making it extremely desirable for investors to get into the position quickly. A breakout pattern is very easy to scan for and identify. Utilizing Candlestick signals creates an easy platform for maximizing profits once a breakout has occurred. The signals provide the ability to determine whether to get into a stock trade after a huge percentage move immediately or wait for the profit-taking pullback. This can be done with some very simple analytical techniques.

Breakouts occur due to a change in world events or a dramatic change in the fundamentals of a company. As illustrated in the INVN chart, a world event changed the fortunes of this company. 9/11 made the product of this company a high profit potential.

INVN is a manufacturer of the luggage scanning machines for airports. The interest in their product after 9/11 moved the stock price from $2.50 to over $45 in approximately 4 months. What was the best way to trade this position? The black candle on the breakout day provided a much different scenario than if a white Candlestick had formed that day. How investors react to news, whether a world event or a product specific announcement for a company, has a great influence on how the trend will perform from that point.

INVN

Currently the AVII chart is illustrating a breakout situation. Recent news announcements have taken the lethargic trading into new recent highs. Volume becomes a very important factor for identifying a breakout situation. The probabilities are extremely high that once a breakout in price occurs, especially out of a very boring trading pattern, the uptrend will continue for a reasonably long period of time, due to the new interest that has come into the stock. The large volume trading days, going from approximate 200,000 shares a day to well over 2 million shares a day clearly demonstrates that new interest has entered the stock.

Once large percentage gains have occurred, pullbacks should be expected. How these pullbacks are portrayed with Candlestick signals is a very important factor for evaluating whether a profit-taking pullback is occurring or the uptrend is over. Having this knowledge greatly enhances the ability to ride through a strong positive move without getting out too soon.

AVII

Market Direction - The Morning Star signal in the Dow with stochastics in the oversold area has been the overriding reversal signal. What could have been a potential of a Double Bottom, or at least a test of the recent lows, was eliminated as buying brought the Dow index back up through Wednesday's open. Wednesday's Bullish Engulfing signal with stochastics closer to the oversold area than the overbought area illustrates that the buyers are still in control. The profit-taking of Tuesday and early Wednesday adds to the health of this uptrend.

The Dow

Continue to hold long positions in strong sectors. The uptrend should eventually test the 50 day moving average and the 200 day moving average.

The Book is Finished! - High profit trading patterns become dramatically more predictable when utilizing Candlestick signals. Practical applications, for greatly enhancing investment returns, are now compiled in an easy to understand format.

Revealed in:

High Profit Candlestick Patterns:
Turning Investor Sentiment into Profits

by Stephen W. Bigalow

The immense amount of information incorporated into Candlestick signals is abundantly illustrated with simple visual techniques. The often misunderstood Japanese Candlestick charting techniques are clearly demonstrated. Steve Bigalow's “ Profitable Candlestick Trading ” book resulted in an overwhelming response from investors finally learning how to utilize Candlestick signals profitably. His new book “ High Profit Candlestick Patterns ” introduces the investor to a refreshingly new and high-powered investment perspective. Candlestick signals provide visually compelling results. Japanese Candlestick charting techniques, integrated with statistically proven Western technical analysis, produce an even more powerful investment platform. The ability to recognize trading patterns in their very early stages empowers an investor with high profit trading strategies.

The book is scheduled to be published in the first week of December 2005. First edition, signed copies will be provided in pre-publication specials starting on November 1, 2005. Start watching for the promotions on the web site.

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.

There is one seat available in the October 22nd and 23rd training class. If you're interested in spending two full days with Steve Bigalow, learning all the intricacies for trading Candlestick signals profitably, do not miss this opportunity. The information that you are receive from a two-day training session with six months of follow-up will pay for itself many thousands of times over. You'll get a full grasp of what makes prices move at reversal points. You'll have a full understanding of the investor sentiment that make prices move. This knowledge will greatly enhance your profitability for the rest of your life.

A November training session is also being scheduled. We will provide the details in future newsletters.

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.

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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.

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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.

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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

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