Online Stock Investing, Pinpointing Trades with Candlesticks
Online stock investing has opened huge doors for the investor that can think on their own. A mere 10 years ago, most of the investment information still came from brokerage firms. However, today the Internet is filled with investment opinions from thousands of sources. How does an investor sift through the multitude of investment information?
Online stock investing now has the difficulty of trying to evaluate the many different opinions and outlooks espoused from the gurus and the so-called professional analysts. The candlestick signals help decipher through the many investment outlooks found throughout the Internet. The candlestick signals tell you exactly what is happening in a price trend. Not what all the fundamentals indicate that could happen, but what is actually going on an investor sentiment.
Candlestick signals are the results of statistical analysis from over hundreds of years of actual trading. They tell you the common sense analysis of what is actually going on in a price. How those this knowledge used to the candlestick investor’s advantage? The signals tell you do what investors are doing in a stock price to spite what the rest of the market is telling.
Note in the EEFT chart how one of the most powerful bullish signals occurred when the rest of the market was in a downtrend. Although common sense dictates that when the market is a downtrend, looking for good short positions has better probabilities of making money. However, there are those investors that either don’t like to short stocks or don’t have the capability to short stocks.
Candlestick signals provide the benefit of being able to pinpoint the stocks that are being bought even in a down-trending market. Although going against the trend of the market, seeing a strong bullish signal in a stock price illustrates a very strong rationale. Investors are buying that stock for some reason despite what the rest of the market is doing.
The EEFT chart demonstrates a very compelling reason to be a buyer. As you’ll see in our chart illustration of the market direction charts of the Dow and the NASDAQ, the downtrend is very evident. On the other hand, the EE FT chart reveals one of the strongest buy signals in candlestick analysis. As revealed in our “Dynamic Doji” educational video, a doji on the oversold condition with the stochastics heading up, followed by a gap up bullish candle has historically demonstrated the beginning of a very strong uptrend. Analyzing this scenario when the markets, in general, are heading down and an extremely strong bullish signal occurs, that should tell you immediately that something is occurring in this stock that has nothing to do with the market trend.
Of 9900 trading entities, you may only find one strong bully signal during a declining market, but it should reveal that something is going on in that stock.
When online stock investing makes all the research available on the Internet, the candlestick signals found in very simple scans will clearly reveal where the actual buying is coming into. Do you want to out perform the markets? You want to master the process for consistent profits? Then keep your investment programs simple. Learn the signals that work. Put your money in the high probability trades.