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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.  Candlestick charts verify when stock market advice is valid

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.

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.

 

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