Stock Market Research Enhanced with Candlestick Signals
Stock market research can be pinpointed more effectively to the right areas of the markets when candlestick signals indicate where money is flowing to and from. Candlestick signals provide an immense advantage to investors when evaluating anticipated trends in the market. The implied logic built into the signals creates a platform that always places the probabilities in the candlestick investor’s favor. The signals are the cumulative results of all investors doing stock market research. It can be assumed that the smart money has paid well for market research for which stocks/sectors should now be considered. Candlestick signals work well on their own; however, applying candlestick signals to easy-to-recognize trading patterns creates a platform for taking advantage of high profit moves. What stocks will perform well in the next rally? That is what stock market research is supposed to discover. Fortunately, candlestick signals are the graphic illustration of all the stock market research that is being applied to the markets. That information should be utilized for exploiting the best profits out of the Santa Claus rally.
What is the Santa Claus rally? The statistically expected rally that appears during the last few days of trading each year? Does that occur every year? Not always! So how does an investor prepare an investment strategy that could take advantage of a strong year-end move that may not occur all the time? Japanese candlesticks signals and trading patterns provide a very clear format for how to position a portfolio for exploiting the Santa Claus rally. This is the essence of stock market timing.
Japanese Rice traders discovered the statistical advantage of the signals. It allowed them to take advantage of ‘most’ investor’s basic human emotions when money was put on the line. Fear and greed becomes the predominant factors in most investment decisions. That is why large volume days are seen at the reversal points. The ‘panicked’ sell out at the bottom, the ‘exuberant’ buy at the top. The question should always arise, "Who is buying the panic selling and who is selling when the world looks great?" Being aware that the candlestick signals exploit those emotions, an investor can quickly start taking advantage of the crowd’s known weaknesses. Having this asset as part of the investment arsenal, an investor can eliminate that weakness in your own investment decisions and make profits from having that knowledge. Capturing human emotions in a graphic depiction makes for a consistent way to extract profits from the market. This knowledge is easily learned when viewing candlestick charts. Unless you have the time and energy to continually do stock market research to find stocks/sectors that should be participating in the next price moves, the candlestick signals demonstrate where funds should be placed.
The Dow and the NASDAQ indices reveal the same chart patterns as individual stocks. Candlestick signals provide major insights into the direction of a trend. This knowledge allows a candlestick investor to implement effective trading programs. The ability to correctly project the current market trend makes long-term investing, swing trades, and day trading much more accurate. Being able to implement candlestick signals into established chart patterns dramatically enhances trend analysis accuracy. When knowledge, built into candlestick signals, is applied to specific patterns, the probabilities of not only being in a profitable trade, but being in a large percentage price move dramatically improves.