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Trading, High Profits With Candlestick Analysis |
Swing
Trading, a relatively new trading technique.
The advent of computers over the past seven
to ten years has opened the opportunity for
investors to trade stocks and other investments
from their home or office. The vast improvement
in charting services on the Internet now provides
a method for individuals to take advantage
of the quick fluctuations in stock prices.
Swing trading provides investors a huge opportunity
to make profits. As the market sentiments
evolve, long term investing becomes less of
a dominant form of investing. Swing trading
has many advantages over long term investing,
especially when implementing with a timing
technique such as candlestick trading.
Candlestick analysis has “common sense” built
into its signals. Understanding the investor
sentiment prepares the candlestick investor
to maximize profits in short term swing trading.
To get into a trade at the optimal point,
anticipating when a trend is about to reverse,
is crucial. Understanding how the common investor
thinks and reacts permits fast profits to
be made by swing trading.
When most trends reverse, they do so with
vigor. The initial day or two of a trend reversal
can produce magnificent profits. Swing trading
is centered upon taking advantage of that
initial move. If the trader has the tools
to find and exploit these moves, swing trading
becomes a profitable and comfortable form
of extracting profits from the market. Our
contention is that the candlestick signals
ARE the tools needed.
Swing trading requires the alignment and concentration
of events to maximize profits. Long-term investing
does not require the stringent perusal of
profit parameters. How often have you heard
somebody rationalize about a setback in their
position, “Oh well, I’m in it for the long
term.” This statement is often uttered instead
of taking a progressive stance towards one's
investment goals.
Swing trading represents the exact opposite.
An investor trying to maximize profits from
a two to ten day holding period has to have
analyzed all elements. When swing trading,
the establishment of a trade has to be exacting
in its purpose, making a profit NOW
in that trade.
The innate characteristics built into candlestick
signals produce the parameters that make swing
trading successful. The recognition of a reversal
in a trend can be visually depicted in the
signals. For the aggressive swing trader,
knowing how the signals are formed can produce
trades that pinpoint the exact point in which
to enter a trade. Additionally, the same indications
that get the candlestick swing trader into
a trade will alert the trader when it is time
to get out.
As seen in the following chart, notice the
Doji signals at each turn. Knowing what to
do after each signal creates the format for
profitable swing trading. Knowing the simple
rules about what to do once observing a Doji
has the candlestick swing trader in and out
of trades at the optimal points.
Learning the methods to evaluate the signals
makes swing trading an easy program to extract
profits out of the market consistently. Candlestick
signals provide two valuable facets. First,
the signal searches locate the high potential
profitable swing trades. The searches can
be constructed to find the signals that occur
at the best positions during a trend movement.
Finding a candlestick buy signal when stochastics
are oversold or searching for a gap up after
a Doji are a couple of examples on how to
fully utilize the search capabilities. The
second facet is the pinpointing when to get
into and out of a trade as explained earlier.
Swing trading concentrates on the alignment
of parameters to maximize profits. The candlestick
signals add the dimension of allowing successful
trades to run, as well as showing when a trade
has fizzled. The Candlestick Trading Forum
specializes in identifying trades suitable
for the swing trading investment community.
Please review the services provided on the
website. Swing trading lies at the core of
Mr. Bigalow’s assertion that the candlestick
signals can be traded to produce 10% per month
return from the stock market. Join the community
of traders that search, research and make
available swing trading ideas on our Forum
and Chat Room. |
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