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October 11th Market Wrap-Up

Is there any way to predict huge selloffs in the market? Not really, but fortunately for candlestick investors they would already be positioned to take advantage of those moves. Candlestick reversal signals would already have had the portfolios oriented toward the short side. The evening star signal of last week, followed by a close below the T line, was a strong bearish indication. Simple portfolio management techniques allow for the conversion from long positions to short positions using the simple logic built into candlestick analysis. Taking advantage of candlestick sell signals in individual stock charts at the same time the market indexes are showing candlestick sell signals is merely putting the logical stars in alignment. An investor does not need to be a sophisticated technical analyst when using candlestick analysis. The graphics of buy signals and sell signals have been identified for centuries by Japanese Rice traders. Merely learning the 12 major signals will put the probabilities of being in the right direction at the right time.

Which are the strongest candlestick sell signals? This question is often asked when people are just becoming exposed to candlestick analysis. Out of the 50 or 60 candlestick signals, the 12 major signals are all that are required to be learned. Once an investor has learned to recognize the signals and understand the investor sentiment that created those signals, they have as much analytical grasp of market/price moves as somebody who is been trading in the markets for 50 years. The kicker signal is an extremely strong candlestick signal because it has the gapping built into the signal. Because human nature works the same way time after time, just learning the 12 major signals will improve anybody's investing/trading. If you already are participating in a successful trading program, overlaying candlestick charts into your analysis would dramatically improve your results.


Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.


Good Investing,

The Candlestick Forum Team


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