Candlestick investors have the advantage of visually evaluating what is occurring in a market trend. Even those trends that are absolutely flat can reveal valuable information. A series of Doji's have significant implications. The information built into each candlestick signal indicates the investor sentiment. If one Doji represents indecision, a series of Doji's illustrate much greater indecision. There are some very simple rules/assumptions that can be applied to trend analysis after a series of Doji's. The trend will usually move in the direction of how they break the the trend, either to the downside or the upside. Today's lower trading implies more continued downside.

DOW

What would alter that prognosis? Going back to the simple statement provided by the Japanese rice traders, "Let the market tell you what the market is doing!" The past few months have illustrated a slow up-moving market trend that have periods of mild pullbacks before the trend moves higher. Today the Dow just touched the 20 day moving average and closed very close to the 200 day moving average. Having the ability to visually witness candlestick formations allows an investor to make quick and accurate trend analysis predictions. What would make a downtrend very obvious? Continued weakness in the premarket futures tomorrow. But what would indicate the markets were just in a mild pullback? Positive premarket futures followed by a Harami signal. That would indicate the 200 day moving average was now acting as support after it had acted as resistance two weeks ago. This may sound like relatively simple assumptions but those assumptions are much more clearly understood when using the information provided from candlestick signals. The analysis of the general market trend is very important for the implementation of portfolio positions.

Candlestick analysis provides very simple rules. The utilization of those rules creates a trading platform that keeps an investor positions on the right side of the market. Knowing there was weakness coming into the indexes this morning allowed for immediate decisions to be made upon positions that have shown the breach of specific indicators. CSIQ had closed just below the tee line on Friday. It needed to show strength today to continue to hold this position. However, the weakness in the premarket futures and the weakness in the stock price clearly revealed the tee line was not going to be held. This allowed for immediate closure of the position. This may not sound like a sophisticated approach to investing but the simple common sense application of candlestick rules illustrates the times to get into a position and a time to get out of a position with a fairly high degree of accuracy.

CSIQ

Will all stocks go down during a bear market? Definitely not! Candlestick analysis makes it easy to see which sectors are maintaining strength in a weak market. Currently the biotech stocks are picking up strength and do not seem to be affected by the sideways movement/downtrend of the major indexes. Why is this important to know? When candlestick signals can reveal immediately whent strength is coming into a sector, the candlestick investor can be establishing trades well before the rest of the market investors are able to identify the strong sectors and then start coming into them. Getting in early allows the candlestick investor to take advantage of the following buying once it becomes apparent that sector is not be an effective by a market selloff.

SQNM

Candlestick Forum Online Training clinic June 20 and 21st - Investment programs become much more effective when you understand why they work. If you have been getting bits and pieces of the common sense logic built into candlestick's through the Monday night and Thursday night online trading sessions, you will dramatically improve your understanding of why candlestick signals work effectively when you see it put into an orderly chronological presentation. Steve Bigalow demonstrates the effectiveness of candlestick analysis in a clear to understand training process. His step-by-step teaching process allows investors to gain insights into candlestick signals. This knowledge puts investors in the same thought process stratum as the professional investor. You will learn how to illuminate the emotions of your investment decisions. You'll learn common sense stop loss procedures. Entry and exit strategies will be demonstrated that greatly reduce your participation in failed trades, greatly improving are correct trade ratios.