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Stock Market Advice - How to Utilize
it While Using Candlestick Signals.
The Internet is chock-full of stock market
advice. Most sites will tell you of the
magnificent trades that their stock market
advice identified. Unfortunately, what gets
lost in the shuffle is the many recommendations
that didn't do anything or created severe
losses. The major benefit of Candlestick
signals is that they allow the Candlestick
investor to do their own analysis of whether
it is time to buy or sell someone else's
recommendation.
Having the ability to recognize the proper
timing for entering a trade can magnify
returns dramatically. This is the time of
year when everyone reflects on the returns
that they made for themselves in 2004 and
want to improve for 2005. The best method
for figuring out how to improve your investment
procedure is to learn an investment method
extremely well and continue to improve on
it. This is a good time to learn the Candlestick
signals, especially the 12 major signals,
but not eliminate the use of other technical
or fundamental information that you have
acquired in the past.
As often mentioned in the education of
the signals on the Candlestick Forum site,
the signals are the statistical analysis
of hundreds of years of research. The fact
that the Candlestick signals continually
produce high probabilities that successful
trades are in the making is the reason they
are still in existence today. The signals
are a study of the reoccurring human emotions
involved in investment trends.
Once the Candlestick investor can identify
high probability patterns, whether in signals
or technical patterns, a continuous procedure
for improving upon those probabilities can
be utilized. The additional input of the
analysis of stochastics, moving averages,
trend lines, and a multitude of other technical
indicators add to the ability to improve
a positive correct-trade ratio. Additionally,
for the investors that are trying to research
companies with the best fundamental potential
for the coming year, the Candlestick signals
can be used for developing optimal timing
for getting into and out of trades in companies
that have high growth potential. Prices
move in waves. Being able to identify peaks
and valleys of an uptrend greatly enhances
return potential, whether buying and selling
a position or utilizing options strategies
to maximize income.
Market Direction - As
effective as the Candlestick signals are
for detecting the occurrence of a reversal,
they can also indicate that nothing is happening
to reverse an existing trend. As witnessed
in the recent uptrend in the Dow and the
NASDAQ, there have been no severe sell signals
for the past few weeks. Having the ability
to analyze that a trend is in a slow consistent
move allows the Candlestick investor to
take advantage of strong buy signals that
are developing in an uptrending market.
The Dow
Note how the Dow has not had any
Candlestick sell signals confirmed for the
past three weeks.
If the analysis becomes one of a steady
uptrend, then holding on to positions through
weak “sell” signals becomes
a functional strategy. The weak sell signals
become profit-taking indications in an uptrend
versus a full-scale reversal. Having that
ability to analyze what the overall market
is doing allows an investor to maintain
positions as they are reaching the overbought
conditions. Keep in mind, most big percentage
moves occur at the end of an uptrend. That
is where the exuberant buying is occurring.
As seen in the Click Commerce Inc. chart,
the recommendation to buy and/or hold this
stock as it broke out after a Doji and Bullish
Engulfing Pattern has been continued despite
the fact that the stochastics indicated
an overbought condition. This hold recommendation
was influenced by the fact that the markets
in general were not indicating any selling
pressure. Additionally, the CKCM chart was
not indicating any sell signals.
If the markets in general showed weakness
and the stock chart showed weakness at the
same time, the hold period for this position
may have been shortened dramatically.
This is nothing more than being able to
analyze all variables that might affect
a stock trade. When applying the direction
of the markets in the analysis of a trade,
or the analysis of Crude Oil prices affecting
the stock market, or the price of bonds,
or the US dollar affecting the market indexes,
or a stock individually, the ability to
analyze each entity creates a better probability
for being in a correct trade.
Use the next week or two for educating
yourself on how to identify statistically
strong reversal signals. You may not always
be in the “hot” stock on any
particular trading day, but the probabilities
of being in a correct trade is enhanced
when utilizing the signals. And the concept
of the Candlestick signals is to have you
in correct trades a high percentage of the
time.
Candlestick Hedge Fund
- The concepts mentioned above will be the
basis of the Candlestick Hedge Fund, being
established in January 2005.
If you would like more information or are
interested in receiving a prospectus on
the fund, please contact us.
Prospectuses will be sent out in the first
week of January. If you would like to speak
with somebody about the details of the fund,
please e-mail your phone number and we will
call you.
The 12-CD Candlestick Training
Special - The response to the 12
major signals CD training program has been
much better than expected. 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. If you have a few weeks at
the beginning of the year to get yourself
organized going into 2005, then take advantage
of a special year-end offer so that you
can use the major signals effectively for
the rest of your life.
Click
Here for the 12-CD 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.
Because the Candlestick Forum is such a
strong advocate of every investor learning
how to use the Candlestick signals correctly,
the Holiday Special will be continued until
January 5, 2005. Please review the products
that the Holiday Special package provides.
As always professed by the Candlestick Forum
Staff, if you have studied the 12-CD set
of the Major Candlestick Signals, and review
the Moving Averages Training CD, and still
have questions, you are always welcome to
e-mail us anytime with questions. The information
that you obtain from the Candlestick Forum
site is not to give you the “potential”
of learning how to use Candlestick signals
correctly, it is to ensure
that you learn the Candlestick signals correctly.
Click
Here for the Holiday Special
Good Investing and Happy Holidays,
- The Candlestick Forum Staff
www.
candlestickforum.com
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