| Online
commodity trading has become much easier to
perform when using Candlestick signals as
your format. Candlestick signals were developed
while trading the most basic of the commodities,
rice. The advantage of trading commodities
using Candlesticks signals versus trading
stocks is simple. The moves in a commodity
or a currency price tend to trend longer and
more consistently than stock prices. The reason
being that there are less outside influences
that affect a commodity trend.
Commodities are usually bought and sold
based on very few parameters, supply and
demand,or weather conditions. Stocks on
the other hand have a multitude of influences
that can affect their trends, the market
conditions in general, competition, interest
rates, management decisions, or a multitude
of other reasons that could affect a stock
price.
The Candlestick signals work very effectively
for illustrating whether investor sentiment
is turning positive or negative. The analysis
of the charts makes the evaluation of whether
to buy or sell a commodity very quick and
easy.
After our recommendation to buy Lean Hogs
on November 2, 2004, it is now time to take
profits and be ready to short Lean Hogs
on a weaker open on Friday (11/19). After
a series the sell signals with a Bearish
Engulfing Pattern forming on Thursday, the
signals indicate shorting immediately on
a weaker open on Friday, or if it opens
higher, short the position as it comes down
through Thursday’s close.
The visual graphics makes trading commodities
online a relatively easy process versus
what was available just a decade ago. Take
advantage of what the Candlestick signals
have historically shown as high probability
trades.
Stephen W. Bigalow is the author of
“Profitable Candlestick Trading” and the
principal of www.candlestickforum.com,
one of the leading websites on the Internet
for educating investors in the use of Candlesticks. |
