Stock Trading Applications With Candlestick Signals
Stock trading applications can be clearly defined when using the Candlestick signals. The Candlestick Forum provides over 350 pages of information on Candlestick signals. This information is not highly technical, it does not have sophisticated formulas, and it does not have intuitive learning requirements. Candlestick signals produce stock trading applications that are based on common sense built into graphic depiction.
Investor sentiment produces reoccurring observable patterns. Candlestick signals visually illustrate that sentiment. Successful stock trading applications require a consistent and verified track record. Candlestick signals have existed for hundreds a years. The fact that they are still in existence today reveals that the results they have produced warrants continuation of their use.
MBA's are trained to study the fundamentals of companies in the hopes of finding successful investments. Candlestick signals work exactly the opposite. They identify stocks/companies that have had a change of investor perception. You can have the best company in the world, but if nobody perceives that it is worthwhile, its stock price will not move. You do not make money on stocks that are not going up or shorting stocks that are not going down. Perception is what moves stock prices.
Candlestick signals provide stock trading applications that produce high probabilities of successful trades. The 12 major Candlestick signals will produce more profitable trade potentials than most investors will be able to utilize. This allows the Candlestick investor to cultivate a watch list down to the highest potential winning trade.
The Bearish Engulfing signal is one of the 12 major signals. It is a significant illustration that there has been a dramatic change in investor sentiment. Adding the other Candlestick analytical aspects to the analysis provides that much stronger a probability that a downtrend is about to start. This is simple analysis. Knowing where a major signal works most effectively is going to provide consistent results for extracting profits from the markets.
As illustrated in the Exide Technologies chart, a few simple stock trading applications implemented in Candlestick analysis are clearly present. Where do investors usually buy? During the exuberance at the top! A gap-up at the top followed by a large candle day, while stochastics are in the overbought condition, illustrates that exuberance. Witnessing a Bearish Engulfing signal at a major moving average lends more credence to being prepared to short this position.
Analyzing charts using Candlestick signals is not difficult. Once Candlestick analysis is learned, an investor will have a very clear insight into what is occurring in a trend. That analytical process can be applied to any trading market.