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High Profits with Candlestick Signals

The stock market becomes an easy medium for making money when using Candlestick signals properly. The stock market is the cumulative knowledge of all investors buying and selling during any particular time. Just like an individual stock, the stock market itself incorporates waves of human emotion. Whenever human emotion is involved with an investment entity, the Candlestick signals can visually clarify what those emotions are doing. The stock market can easily be analyzed when applying Candlestick analysis.

Being able to analyze the direction of the stock market greatly enhances the ability to extract profits. The fact that the stock market moves up and down without major changes in fundamental economic conditions from week to week is a clear illustration that fundamentals do not move markets, the perception of fundamentals is what moves markets. Candlestick signals identify what is going on in investor sentiment whether you are studying one-minute, five-minute, or fifteen-minute charts, or whether you are studying the daily, the weekly, or the monthly charts.

Candlestick signals visually depict the cumulative knowledge of everybody that was buying and selling during that specific time. Learning and understanding the 12 major signals found in Candlestick analysis not only allows an investor to identify reversals in a trend but, more importantly, allows an understanding of what investor sentiment created those signals. This produces a tremendous insight into understanding why the stock market moves the way it does.

Why go against the flow? If you can easily analyze, with the probabilities in your favor, whether the stock market is in an uptrend, a downtrend, or is trading flat, the Candlestick investor can greatly enhance their investing returns by positioning the portfolio in the direction of the stock market. Does this eliminate the possibility of a stock going up in a down market or vice versa? Definitely not! However, when trying to put all the probabilities in one's favor, it is much easier to find individual stocks that have bullish signals when the market is heading up or bearish signals when the market is heading down.

Use Candlestick signals to your advantage. Learning the 12 major signals will dramatically improve your analysis of the stock market direction. Being able to analyze the times when the market is demonstrating Candlesticks buy signals after an extended downtrend eliminates the “grabbing the falling knife” concept. Candlestick buy signals in an oversold condition illustrate that the buyers are finally stepping in. Does that represent the absolute bottom? No, but it does indicate that the probabilities are now in your favor to be adding long positions and closing short positions. This is not rocket science. This is using indicators that have worked successfully for centuries.

As illustrated in the Dow Jones chart, when stochastics are in an oversold condition and Candlestick buy signals start forming and, seeing the Spinning Top followed so far by the Bullish Engulfing signal, it becomes a high probability situation to start buying. Stop loss procedures become very simple when seeing where the buying becomes negated.


Online stock trading can utilize the instant analysis that is produced by simple charts. The visual interpretation of Candlestick signals is very easy. Being able to apply other important technical indicators to the Candlestick signals immediately produces a huge profit potential. Gone are the days of having to calculate each indicator. The charts of today expedite online stock trading analysis tremendously. Learn how to use the Candlestick signals with these confirming indicators and the probabilities of being in a correct trade expands dramatically. This is not rocket science. The 12 major signals in Candlestick analysis will provide more trade opportunities than most investors will ever require.

 

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