Candlestick Trading Forum
keyword search

Candlestick Trading Forum        

Stock Chart Technical Analysis Scans - Big Moves With Candlestick Signals

What is the optimal trading strategy? What do most investors strive to find? The stock prices or commodity prices that are going to offer huge gains! Unfortunately, most investors find out about huge profit situations after they occur. Are there ways to have the inside track on what is going on across all the markets? Not unless you have access to a massive research team. Since most investors do not have that capability, what is the best approach?

Utilize stock chart technical analysis scans. Using Candlesticks signals makes for high profit potential. Will using stock chart technical analysis scans put investors in all of the big trades? Definitely not! However, using stock chart technical analysis scans, while applying Candlestick analysis, puts an investor in situations that have a high probability of being in the right place at the right time. The Candlestick signals illustrate where the buying and selling is occurring in the markets. This advantage alone provides the opportunity to identify possible big trading results.

Stock chart technical analysis scans incorporate the criteria that will produce a high profit trade. Finding trades where the stochastics are in the overbought or oversold condition will produce good profits. Finding moves that are bouncing off of major moving averages will produce good profits. Finding a Candlestick signal will produce excellent profits in its own right. However, when applying Candlestick signals, along with stochastics and moving averages, into stock market technical analysis scans, formats are provided where all of the probabilities are in the investors favor. Those trade set-ups provide the opportunities to be in big-trade positions.

As witnessed in one of our recent recommendations, NTES is a prime example of identifying all the parameters being in the right place. The evaluation was simple using Candlestick analysis. Using the stock chart technical analysis scans, a Morning Star signal was revealed moving up off of the 50 day moving average while stochastics were in the oversold condition. This made for a high-probability trade

What was the analysis for the potential move? The Morning Star signal, off of the moving average, indicated the start of a bullish move. The recent tops represented a possible resistance level. The previous action of NTES also showed the possibility of a wave 1 moving from the $48 range to the $62 range. That move initiated off of the 50 day moving average. The fact that the price move returned to the moving average, after a consolidation stage, indicated the possibility of a third wave of a three-wave pattern commencing.

The third wave of that pattern would indicate a positive price move of $14 or greater, the magnitude of wave 1. As discussed in the Thursday night chat session of two weeks ago, not only was the stock trade a high probability trade, but the option strategies against this position look very promising.

Do all trades hit the potential targets? Definitely not! And not all trades hit a target in a one-day move. However, when performing stock chart technical analysis scans, the purpose is to find the best potential trade situations. The underlying sentiment forming a Candlestick signal reveals important information. Investor sentiment has had a change. Analyzing high profit patterns provides targets. This combination will allow investors to be in the right places at the right time with a much greater probability than other technical analysis.

When do you buy using Candlestick signals when stochastics are ?not' in the right conditions? When you identify high profit patterns! As illustrated in the recommendation of MYOG, the formation of the J Hook pattern illustrated more upside potential of this stock position. When is it prudent to buy a stock that has moved up over 100%? When a high profit pattern can be identified. The J Hook pattern formation created a recommendation in approximately the $10.70 area. What was anticipated from the pattern? Either a ?fizzle? at the recent high, the $11 area, or the next move being the same magnitude as the move prior to the J Hook pattern.


Candlestick Trading Forum