Why Do You Need Commodity Charts?
Commodity charts are a valuable way of monitoring changes in commodities trading. They really represent a quick summary of all your research. By looking at a commodity chart you can see what has occurred over the period of time you are reviewing. Much of understanding trading and investing means that you see what has happened and how those past events can affect what is going to happen in the future. Commodity charts give you that snapshot in time and form a basis for evaluating future movements.

Reasons For Using Commodity Charts
There are three basic reasons to use commodity trading charts. These reasons include analyzing the past, understanding the present and predicting the future. Each one is an important part of commodity investing and can help you do a better job of it.

Commodity Charts For Analyzing The Past
This probably seems like the most obvious use of commodity charts. Each day you record the movements of your commodities: the high and low prices, the opening and closing prices and whether the commodity ended up or down. If you are using Japanese Candlesticks, this is all part of what is called the “real body” of the symbol. Each day that you record this information gives you more information about what has happened with a particular commodity. Commodity charts can help you analyze the past because you can look at a large selection of days and see the trends as they happened, allowing you to draw conclusions about the past.

Commodity Charts For Understanding The Present
What happened yesterday and what is happening today on your commodity chart? The current activity has the most effect on your commodity investing today. If you buy or sell today, these are the prices you will get, not last month’s price or next month’s price. In addition, today’s activity is built on the shoulders of the past so today’s commodity chart always includes more information than yesterday’s. Trading commodities is today’s event.

Commodity Charts For Predicting The Future
If trading commodities is today’s event, why do we even need to a commodity chart for the future? Commodity trading is for today but futures trading is for tomorrow. That’s why we need commodity charts for predicting the future. Futures trading is a speculation about the direction a commodity will take at a later date. Futures contracts are profitable when a trader correctly predicts the movement of a commodity. This is where a system like Candlesticks is so valuable. Candlestick chart analysis allows a trader to view current and past activity and use that information along with the formations that they create to predict what will happen with a commodity. If you know what is going to happen, you can make plans to profit from the upcoming event. Candlestick charting gives you that ability.

Conclusion
Commodity charts are relevant for the past, present and future. An investor that makes good use of these charts can “reveal the secrets of the universe” find profits in the commodities markets.

Market Direction: Many investors learn how to invest the 'wrong' way. Unfortunately, that requires them to 'unlearn' what they have learned to eventually get to where they can invest successfully. Fortunately the Internet has made investing much easier for most investors to get hands-on experience where they couldn't before. What can greatly speed up the re-learning process is studying candlestick signals. Candlestick analysis is the visual depiction of what investor sentiment is doing. Why do you buy a stock or any other trading entity? Because you think it is going to go up. Usually that decision was made upon something that fundamental research indicated or a news article invoked or a recommendation from somebody else.

Whatever the reason that most investors make their decisions, the thought process usually differs from one investment decision to the next. The advantage candlestick signals provide is the consistency. The thought process can be analyzed in a visual graphic for when to buy and when to sell. The predominant factor in that statement is the term "when". Sometimes fundamental research can eventually put you in a position that will produce significant profits. The major problem might be that it takes many years for the results of that research to eventually reach investor psychology. Candlestick analysis pinpoints when investor psychology is properly assessing the fundamentals.

The reasons for investing incorrectly can occur very quickly. Human emotions provide an inverse effect for analyzing price trends properly. It can take many years for investor to correct improper investing perspectives. However, applying the information built into candlestick signals can change an investor's perspective very quickly. Candlestick analysis is the visual study of what investors have previously done. If you have problems finding the high profit trades or controlling your emotions for entering or exiting an investment position, the Candlestick Forum provides teaching processes that can quickly reverse bad trade this vision making. Private training sessions, such as the next one being offered on September 29 and 30th, will establish a visual analytical mindset that can eliminate investment practices that lose money for most investors. Online training sessions also reveal important investment processes that are unique the candlestick analysis. Logical stop loss procedures, when to take profits, when to continue to hold a price trend despite some short term selling pressure, how to identify the high probability  high profit trades are embedded in the visual analysis produced by candlestick signals.

The signals represent what investor sentiment is doing. There are many resources for influencing stock prices or commodity prices. Some of those resources do not always work in a timely fashion. When the TV talking heads start discussing how good or bad a sector's future may be, more than likely there has already been a dramatic price move. When does everybody get excited about a stock or a sector? After it has had a good strong bullish move. When do you see articles about the dismal future of a stock or sector? After it has had a strong bearish move.

A prime example was seen in RDN today. Barron's had a very negative article on the company. With that article more timely two months ago when the stock was trading at $60 or now when it was trading at $20? Did that article reveal any information that changed investor sentiment of its current trend? Apparently not with the price opening at the low and immediately started to trade higher. By the end of the day, the stock closed up $.30 after being down significantly on the open.

RDN

What is illustrated by the bullish candle? Obviously, the bads news article didn't phase current investor sentiment. The bulls are still in control. Had the price opened lower and still moved lower, that would have told a completely different story. Analyzing the candlestick formations and knowing what they tell can dramatically improve an investor's profits.

Knowledge makes money. Having the knowledge of what information is built into the signals produces a huge advantage for assessing investment entities. You have the ability to learn how to evaluate the probabilities for making good profits in any market.

Private Training session - September 29 and 30 - Take advantage of experience that will reoccur in investment opportunities for the rest of your life. You do not have to depend upon others when you can visually analyze what investors are repeatingly doing. Spend two solid days with Mr. Bigalow and your perception of investing will be improved for the rest of your life. Click here for details.

Chat session tonight - Members only - 8 pm ET.

Good investing,

The Candlestick Forum Team