What does the market tell you when you start seeing whipsaw trading days? Indecision! The same rationale when witnessing a series of Dojis can be applied to the Dow over the past week of trading. When the market trades at a level where the Bulls and the Bears are fighting, anticipate a change of trend direction. As illustrated in the Dow chart, the analysis becomes very simple, the Bulls and the Bears were fighting indecisively. In this case, the indecision was illustrated with massive price moves up and down.

If you break down each trading day, the signals reveal significant information. Over the past week, three bullish Haramis formed after down days. A bullish Harami reveals the selling has stopped. Knowing the simple rules for each of the major signals makes anticipating what should happen next much easier to assess. What is expected after a bullish Harami in the oversold condition? Positive confirmation. That confirmation did not occur after the first two bullish harami signals. Additionally, the T-line clearly illustrated it was acting as resistance. What is required to confirm a reversal of a trend after the trend has existed for a length of time? A candlestick reversal signal confirmed AND a close above the T-line.

DOW

Nasdaq

What warranted buying long positions aggressively after a week of whipsaw trading? Tuesday's bullish Harami closed right near the T-line. What would positive trading on Wednesday indicate? The confirmation the Bulls were still around after the bullish Harami AND the trading would take the Dow up through the T-line. Waking up on Wednesday morning to find the Dow futures up 110 points was an immediate confirmation that the Bulls were still in the market. It could be easily anticipated that there would be a positive day in the markets, which would breach the T-line and confirm the bullish Harami. This evaluation allowed us to be buying immediately on the open Wednesday morning. Was there any way to anticipate a 330 point move in the Dow? Definitely not, but evaluating all the parameters for confirming a trend reversal allows an investor to get into positions immediately. A 330 point move in the Dow was an added bonus.

Can you extrapolate knowing which direction the markets are moving in general to take advantage of individual stock price moves? Definitely! That is the major advantage for being able to analyze what the candlestick signals are revealing. Each signal has expected results. The Candlestick Forum's 12 Major Signals training CD provides an in-depth study of what should be expected for a successful trade utilizing candlestick analysis. These expectations are merely the culmination of common sense investment principles. When you understand how to use the signals successfully, you will dramatically improve your investment capabilities. You'll understand why the smart money is able to buy and sell at the appropriate times.

Analyze the recommendation of TBSI. This becomes a perfect example of putting all the parameters in alignment. After an extended downtrend, what signal formed right on the 200 day moving average? A Hammer/Harami signal! With stochastics in the oversold condition and a bullish signal occurring right on a major moving average, what would confirm a reversal? A positive open after a Hammer/Harami signal. The first target could easily be the T-line. That move alone would produce over a 12% profit. Once the signal was identified, witnessing a positive open the next day would have warranted immediate buying.

TBSI

Knowing that the Dow and the NASDAQ futures were up strong, this as more confirmation to be watching and being ready to buy immediately on a positive open. NASDAQ stocks show the bid and ask prior to a market open. Upon seeing a gap up in price and knowing that the market in general was initially going to be acting strong, this made getting into this position on the open a very easy decision. An easy decision on the basis that all the parameters required for a successful reversal of a trend were in place.

Learning the simple techniques for successful investing is not a difficult process. Each day in the Candlestick Forum chat room, stock recommendations are constantly being identified. The advantage an investor has in a chat room is the constant learning process for reinforcing the visual analysis of successful trades. 60 or 70 other sets of eyes finding strong buy signals or sell signals is further enhanced with experienced investors evaluating the pros and cons of trade possibilities. Like any other learning process, constant reinforcement of successful evaluations allows an investor to gain a mindset for successful investing.

Chat session tonight at 8 p.m. ET- Rick Saddler will be speaking on Thursday December 13, 2007. He will be demonstrating one of his techniques for providing successful day trade income. If you have not experienced one of Rick's training sessions, it will be well worth your while to listen how he uses other technical indicators in combination with candlestick signals to produce a consistent income from the markets. Candlestick signals are a very simple visual analytical tool to apply to successful investing. Rick Saddler enhances the success ratio by adding additional simple visual analytical tools to his trading program. Come listen to a trader that is successfully making a living by pure day trading. This is not theoretical information. This is actual nuts and bolts of how to pull profits from the markets. Click here for instructions.