If you are interested in buying commodities there are a number of things to do before opening an online trading account. The obvious ones are to research online trading software and take an online trading course such as Commodity and Futures Training. Aspiring traders will also want to have a fast internet connection and computer hardware with the capacity to handle lots of data in a hurry. A Windows 2003 server is typically sufficient. As a general rule of thumb the trader will want at least 4 GB of memory and a dual core 3.2 GHz processor or two Quad-core 2.6 GHz processors. Then the system will need two network cards, one pointed towards the system and the other pointed towards the exchange. A hard drive with 30GB or more memory capacity will be needed to store the software and log files. Once the trader has the hardware set up, the software installed, and has taken the first online class the work starts. To engage in successful online commodity trading the trader needs to develop a trading strategy for buying commodities.

A commodity is a thing that is bought, sold, and, commonly, consumed. Buying commodities like corn futures and oil futures is done for two reasons. Producers and processors of these commodities engage in hedging in the commodities markets in order to reduce investment risk. Other traders buying commodities and selling commodities do so in order to profit from recurrent commodity price fluctuations. Gold futures are different in that industrial use is a small aspect of the value of this precious metal. Gold prices fluctuate with the state of the economy and concerns about inflation. However, when buying commodities the trader is concerned about price. How the commodity is used is only important so far as that information affects commodity supply and demand. Buying commodities is profitable in so far as the trader is able to anticipate rises in commodity prices. The trader will buy futures on the commodity and then sell once the price has risen. If the price is likely to head down then the commodity trader will want to sell commodities instead of buying and then buy when the price has gone down.

The point of this discussion is that a commodities trader needs to learn the fundamental analysis of the commodity he trades and needs to use his trading software to do continual technical analysis in order to profit. Developing a commodity trading system is of utmost importance which is why a formal start to learning about buying commodities is important. An alternative to buying commodities is buying calls or buying puts on futures contracts. Unlike buying commodities, buying options does not confer an obligation to buy the commodity. The trader buys the right to either buy or sell the commodity future in question. He or she need only exercise the options contract if the price moves in the right direction. Although the options trader pays a premium for buying options he does not lose money based upon unexpected price movement when buying commodities.

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Market Direction

When is it time to take profits? This is a difficult function for most investors. Many investors know how to enter trades, but they have a very difficult time knowing when do come out of a trade. That process is made  simple using candlestick analysis. Because the signals have definite expected results, profitable trading strategies become very simplistic. The signals are usually the strongest indicators for when there has been a change of investor sentiment. Confirming indicators also dramatically improve the probabilities that a trend reversal has occurred.

As illustrated in the ARNA chart, there was an obvious time to come out of that trade. The Doji, followed by the Bearish Engulfing signal, known as a left/right combination, indicated more weakness than what should be expected for an uptrend. The tee line acted as a possible support level. However, when the Doji was formed on the tee line, the candlestick investor had a very simple trade strategy. Knowing that the trend would move in the direction of how it traded after the Doji is a very simple but valuable trading tool. The lower open confirmed the downtrend. This was also reinforced by the fact the tee line did not act as support. That was the appropriate time to be out of this trade.

ARNA

There will be times when it is advisable to take some profits even though a candlestick sell signal has not yet formed. This is illustrated in the ADY chart. If buying at the Morning Star signal, and then seeing the price breach the tee line, what becomes the next logical target? The 50 day moving average! What assumptions can be made about the 50 day moving average? Everybody will be watching that level. They will be watching that level as a potential target. As a candlestick investor, taking profits as the price reached the 50 day moving average became more compelling. Note where the stochastics had moved to by the time the prices got to that level. Also note what occurred the previous day. A big bullish candle in the overbought condition. The following day, when the price moved a good percentage again to reach the 50 day moving average, taking half of the position off at the 50 day moving average is prudent even though there would not have been a candlestick sell signal developing at that time. Visibly the candlestick investor would be able to see the exuberant buying in the overbought condition.

ADY

The following day, when prices opened higher, the candlestick investor has some very simple entry and exit strategies. If the price continued bullish, coming back up through the 50 day moving average, and the previous days high, half of the position could have been bought back. That bullish strength would have indicated the 50 day moving average was not going to be  resistance anymore. Filling the gap from early August would now be the next potential target. If the price had opened lower after the Doji, the remaining half position would’ve been closed out immediately. When the price opened higher, a simple stop loss strategy could be put in place. Placing the stop loss one penny below the previous days open, the Doji, would’ve indicated the bears were still in control.

Candlestick analysis is not merely identifying where the reversals are occurring, is using common sense visual elements of a candle bodies to decide when to be in or out of positions. Utilizing this information takes a great deal of the emotions out of ones investing.

Chat session tonight at 8 PM ET. – for members
Good Investing,
The Candlestick Forum Team

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Current Website Special

Quick-Start Trading Package – 50% OFF!!!

Fall 2010 E-Learning Online Training Schedule

Basic Stock Market Training with Candlestick Analysis
September 25 & 26, 2010

Options Training Course 
October 16 & 17, 2010

Commodity Training
November 6 & 7, 2010

Boot Camp
November 20 & 21, 2010

Website special reflects current newsletter. If you are reading an archived newsletter you will be directed to the Current Website Special.

The strike price is the price of a stock or other equity specified in options contracts . The strike price is the price at which a contract in options trading will be delivered should the buyer choose to execute it. The strike price will be the price of satisfaction of the options contract no matter what the market price, also called the spot price , is at the time. Specifically, it is the price at which owner of options can buy stock in case of a call option or sell stock in the case of a put option. The strike price of an options contract is also referred to as the exercise price. When trading options on stocks the trader carries out the same types of fundamental and technical analysis that he would when buying stocks or selling stocks directly. He will use Candlestick analysis to gauge market sentiment and assess a stock’s margin of safety and intrinsic stock value in order to have a clear view of the stock’s eventual value.

Using Candlestick patterns as a guide, traders in the options markets seek to anticipate if stocks are likely rise above the strike price of available options contracts or are likely to fall below the strike price. If the trader anticipates a rise in stock price above the strike price he will seek to profit by buying calls on the stock at given strike price. If he expects the stock price to fall he will seek to profit by buying puts. Buying calls gives the trader the right to buy stock and buying puts gives the trader the right to sell stock, in each case at the strike price specified in the contract. In neither case of buying options does the buyer have an obligation to buy or sell. It is the seller of puts or calls who gains premiums for taking on the risk of unanticipated, by him, changes in stock prices.

Options contracts vary length. As the contract runs its course the contract will have intrinsic value and time value. The intrinsic value of the stock is the difference between the current market price or spot price and the strike price of the contract. The time value is what the market consensus assigns a stock based upon expected price movement between the current date and the contract expiration date. As the time to contract expiration becomes less so does the time value of the contract. Finding profitable investments in the options markets takes the same sort of attention to fundamental analysis and technical analysis as does buying or selling stocks directly. To the degree that an options contract has less time to run the fundamentals become less important. Technical analysis tools such as Candlestick pattern formations , however, are always useful as they can spot short term changes in market sentiment. They always have the potential when coupled with Candlestick trading tactics to lead to short term profits in trading options on stocks or other equities.

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Market Direction

Today the NASDAQ gap down on the open, revealing that the pennant formation had now been breached to the downside. Although the Dow and the S&P 500 held up reasonably well during the day, the question became whether the Dow and the S&P 500 would start selling off to match the selling of the NASDAQ or with the NASDAQ start showing strength because the Dow and the S&P 500 were not selling off. The first scenario had to be watched more diligently due to the gap down in the NASDAQ. That indicated there was some strong selling forces occurring in the markets.

Mark your calendars – Tina Logan will be the guest speaker for Thursday night May 19 and John Bollinger will be guest speaker on June 9.

June 11 and 12th are scheduled for a two day candlestick training. This will be a follow-up to the 12 major signals training two weeks ago. Get more details on the website. Private training session is now being scheduled for Keuka Lake, New York in August. Serious traders should plan on spending three days on the beautiful waters of one of the beautiful New York State finger Lakes, Keuka Lake. These private training sessions allow investors to get the rural answers and training on flaws they may be concurring in their own investments. More details will be posted later this week on our events and training.
 
Good Investing,
 
The Candlestick Forum Team

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Scanning Techniques Quick Download

Website Special reflects current newsletter. If you are reading an archived newsletter you will be directed to the Current Website Special

 

Stock investing becomes much easier with an established trading program. Candlestick analysis is a highly productive and easy trading method for learning successful stock investing. Candlestick signals not only provide a visual alert for when a reversal is likely to occur in a trend, but the signals themselves hold an immense amount of investment information. Understanding what makes those signals work effectively provides great insights into stock investing psychology. Candlestick charts visually depict the investment psychology.

Once an investor understands why a signal was formed, stock investing strategies become very easy to implement. Fortunately, through the past few years, the teaching of the Candlestick signals has become greatly simplified. As you should have discovered on the Candlestick Forum website, Steve Bigalow has reduced the learning process of Candlestick analysis down to 12 major signals. Understanding the effects of those 12 major signals allows the investor to concentrate on high profit situations.

Although there are many stock investing theories and trading programs, Candlestick signals should be the basic building block for enhancing all other trading programs. The reason is that the stock market data through Candlestick signals tell you exactly what investor sentiment is doing “right now”. Utilizing the information conveyed from the major signals, the analysis of potential high profit patterns becomes further enhanced. This past couple of weeks the Fry Pan Bottom pattern and the Scoop pattern have been discussed during the weekly chat sessions.
They have been illustrated because they have been producing some very profitable trades in the recent past.

BOOM, for example, has produced over a 100% return this past month. ANTP provided a good 40% return and may be in the process of producing some more. These patterns become easier to identify when visually recognizing what the Candlestick signals are indicating.

The Bullish Engulfing signal was also discussed because of its importance when witnessed in the Dow this week.

The Bullish Engulfing signal is one of the major signals that can produce consistent high profit situations.

The Bullish Engulfing pattern at a bottom of a trend provides significant information. Notice where the ARBA price opened when forming the Bullish Engulfing signal. It gapped down! In an extended downtrend, where do most investors panic sell? They sell at the bottom! The question becomes when everybody is panic selling, who is buying?

A Doji formed on Thursday, followed by a Bullish Engulfing signal on Friday with stochastics in the oversold condition and big volume. This is the prime set-up for a reversal. What would be the first potential target? The answer is $9, a 23% potential gain. From there, the next target is the $10 level and if it breaks through there, possibly the $12 level, filling the gap.

Will it get to any of those levels? Who knows? But the appearance of a Bullish Engulfing signal in an oversold condition and with high volume provides an extremely high probability that the uptrend should have started. Does that guarantee a 23%, 30%, 75% return? No, but it does provide a high probability of producing a profitable trade.

ARBA

BULLISH ENGULFING SIGNAL

In today’s article we will take a look at the forex market and have a forex review over information that has been provided in previous articles. Forex trading is very different from the stock market for various reasons. For instance, the forex market has no central exchange. Trading can take place around the clock and there is no regulatory commission such as the Securities Exchange Commission (SEC) that oversees the market.

As part of the forex review you will remember that it is the most liquid market in the world and you can trade forex 24 hours a day. The FX market is not commission based and it is a principals-only market. The brokerage firms for forex are actually dealers rather than brokers so the dealers assume market risk, unlike regular stock brokers and they make their money through the bid-ask spread, instead of through commissions.

The major currencies that are traded on the forex market are seven of the most liquid foreign currency pairs in the world. These seven currency pairs account for more than 95% of the trading that takes place in the currency market, along with their various combinations of pairing.

USD/JPY – dollar/Japanese yen
EUR/USD – Euro/dollar
GBP/USD – British pound/dollar
USD/CHF – dollar/Swiss franc
AUD/USD – Australian dollar/dollar
USD/CAD – dollar/Canadian dollar
NZD/USD – New Zealand dollar/dollar)

As part of the forex review you also learn that the forex market is the most accessible market in the world. It rarely has any gaps in price and it large size equals about $2 trillion dollars each day in U.S. dollars. As mentioned above, forex brokers make their money though the bid-ask spread. The bid-ask spread is the amount in which the ask price exceeds the bid price when trading forex. In other words, it is basically the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price in which a seller is willing to sell it.

Keep in mind, as you learn about forex currency trading, that it is a purely speculative market. There is no actual physical exchange of foreign currencies that ever takes place. The trades are only computer entries that are handled according to the current market price.

Continue to learn about foreign exchange trading and see if it is a good fit for you. Many find they make a good return on investment in this market.

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Market Direction

Why is it important to see what candlestick signals occur at the end of the each time frame? Today’s trading produced a perfect example. The Dow had been trading down around 100 points most of the day. Had the markets closed near the low end of their trading range, the Dow would have formed an Evening Star signal. This would now have led to the possibility of a slow uptrend finally being over. The NASDAQ would have shown weakness that would have confirmed the start of a potential downtrend had it closed near the low end of the trading range. This would have put the NASDAQ and the Dow right on their tee lines. A weak open tomorrow would have confirmed the bears were in control. This was the likely prognosis for most of the day.

DOW

The Bulls stepped back in during the final hour. Both indexes closed relatively flat. But the important information revealed was the lack of bearish control. The Doji that formed in the Dow provides a very simple trading platform. If the premarket futures reveal strength in the morning, the uptrend will have a high probability of moving steadily higher. A lower open will still have the support potential of the moving averages. Unless severe selling is witnessed tomorrow, the uptrend is still considered to be in progress. Why is this trend analysis important? Knowing that the uptrend is continuing allows investors to take advantage of high profit price move potentials created by the candlestick patterns.

LDK had a strong day as it was nearing the end of a rough Fry pan bottom formation. Prices coming out of identifiable patterns allows for a number of strategies to be put in place. Because signals and patterns have expected results, a stock position can be greatly enhanced by simple option strategies in conjunction with a stock purchase. A major advantage of candlestick analysis is having a grasp of when a price move should occur and how powerful that move will be. The illustration of the LDK confirmation of a Fry Pan bottom pattern can be used in anticipation of a strong price move. With that analysis in place, due to the consistency of results demonstrated by a Fry pan bottom breakout, an investor can exploit that move with various stock/options strategies.

LDK

ABMD

Most investors have a problem with just identifying the direction of a price move. That problem is greatly resolved when using candlestick analysis. Trading off of high probability reversal signals or price patterns greatly reduces one of the variables in any trade. Candlestick signals and patterns put the probabilities of being in the right place at the right time greatly in your favor.

The Candlestick Forum Option Training program – June 13 and 14th. Learn how to apply the correct option strategy to the correct price movement. You’ll be amazed at how simple option strategies can be put in place when you know the potential of the next price move. You will gain valuable insights from simple strategies that are not taught in most trading forums. For only $797, you will learn how to simplify your option analysis. The Candlestick Forum also provide you with the option to pay for this training in three equal $277.00 monthly payments. For more details please e-mail admin@candlestickforum.com. Click here to sign up for the Candlestick Forum Option Trading program.
 
Good investing,

The Candlestick Forum Team

Quick Look at Stock Trading Terminology for Beginner Investors

Understanding stock trading terminology is crucial before beginning a stock investing career. This article provides a good place for you to start!

Stock Trading Terminology: A Few Simple Terms

Capital Gain

The amount in which as asset’s selling price exceeds its initial purchase price. This is the profit that results from the sale of an investment and generally receives more favorable tax treatment than ordinary gains. An investment that hasn’t been sold yet but would result in profit if sold is an unrealized gain.

Equity

Ownership interest in a corporation in the form of common stock or preferred stock. It is also referred to as shareholders equity, net worth, or book value.

Ticker Symbol

A system of letters used to identify stocks or mutual funds. They are up to three letters and are used for stocks that are listed and traded on a stock exchange. Symbols with four letters are used for NASAQ stocks and symbols with five letters ending in x are used for mutual funds.

Volatility

The state at which the price of a security moves up or down and is found by calculating the annualized standard deviations of daily change in price. High volatility is when a stock moves up and down rapidly over short periods of time. If the stock price almost never changes then it has low volatility.

Understanding basic stock trading terminology is the first step towards a trading career.

Stock Trading Terminology: Methods

Technical Analysis

Technical analysis is the method of evaluating securities by analyzing market data through the use of stock charts of price, volume, and open interest, in order to predict future market trends. This method assumes that market psychology influences trading in a fashion that enables prediction of when a stock will rise or fall. The intrinsic value of the security is not considered, but instead the overall state of the market is examined.

Fundamental Analysis

Fundamental analysis is the method used to evaluate the value of a security in which the investor carefully examines the company’s financials, operation, earnings, growth potential, assets, debt, management, products and competition. This type of analysis takes into account the variables that directly relate to the company itself.
Once you have an understanding of the stock trading methods that you can use, continue to learn other stock trading terminology in relation to these methods.

Stock Market Terminology: Strategies

Buy and Hold

This investment strategy takes place when stocks are bought and held for long periods of time, regardless of the market’s fluctuations. It is based on the assumption that stock prices will increase over the next 10-20 years and the market as a whole will rise despite short-term fluctuations because of rising inflation or business cycles.

Growth Strategy

This investing strategy is based on investing in companies that are growing faster than others in the same industry. The goal is to generate capital gains rather than dividends.

Short Selling

This is the borrowing of a security or commodity futures contract from a broker and selling it with the understanding that is must later be bought back and returned to the broker. This strategy aims to profit from falling prices of stock and the investor’s stock broker will borrow the shares with the promise that the investor will return them later. The profit is the difference at which the stock was sold and the cost to buy it back, minus any expenses and commissions.

Now that you have the basic stock trading terminology down, and you know which methods you will practice, you are on your way to becoming a stock trader. Continue to research online terminology associated with trading stocks and take the necessary tutorials and training courses so that you can get started in your stock trading career. Good luck!

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Market Direction

What it is the market telling us? Japanese Rice traders had the ability to analyze which direction the market was moving based upon what the signals were revealing. They could do this when analyzing a single trading entity such as Rice. Whether a single trading entity or a market index, the same information is going to be conveyed with candlestick formations. Having the knowledge of the general direction of a trading entity/market provides a huge advantage for extracting profits of the markets. This may seem like an oversimplified statement, but most investment techniques do not have the capabilities to analyze trends as they are in progress. Many investment techniques are used for projecting where a reversal of a current trend may occur.Candlestick signals produce information that makes the evaluation of an in-progress trend much easier to analyze. Being able to assess whether a market trend is in an up trend, downtrend, or sideways mode becomes very important for implementing trading strategies. Obviously, the trading strategy for up trending market will be different than a down trending market. A trading strategy will be completely different when the market is choppy or just moving sideways. Although this may seem like an oversimplified statement, as a candlestick investor, the application of trading strategies becomes much greater refined when knowing what the overall market trend is doing.

Evaluating what the overall market is doing is merely analyzing what it has been doing. As seen in the Dow chart, there has not been any great decisive move for any great length of time one way or the other. What is the overall market trend? If you will notice, the Dow closed the month of July almost at the same level it started July. The sideways movement for the month does not yet indicate whether this is a bounce in a downtrend a market or the bottoming action for the next uptrend. The market conditions over the next few days will have to provide more evidence one way or the other.

DOW

The point of investing is to put funds into situations that provide a higher degree of probability for making profits. The candlestick signals are instrumental for projecting where a trend is moving. They are also as instrumental for analyzing that there is no trend. Obviously, the ability to make profits in a sideways moving market becomes much more difficult. For many investors, it is difficult for them to make money even when the markets are trending up or down. “Sell in May and go away” it is a normal stock market adage. Does that always hold true? Not always, and that is where the utilization of candlestick signals becomes more beneficial. There will be summer rallies. Candlestick analysis will identify those rallies, even though they do not occur very often. Even though most summers are not worth trading, candlestick analysis will identify the ones that are and also identify what would be considered a normal summer blahs. Why is this important? Just like any other activity or job, it is good to get away from it for a while so that the mind, body, and spirit can rejuvenate.

There are positions that are still making money in this market. Identifying them is a function of knowing the candlestick signals and candlestick patterns. As seen in the AMSC recommendation, the Jay hook pattern has produced a good percentage profit despite what the market action was doing. Candlestick signals and patterns have the statistical proven capability of producing good profits during any market conditions.

AMSC

The question now becomes whether it is worth staying by the computer screen and trying to eke out some profits or go enjoy summer activities. If the market does not providing good opportunities, save your mental energy for when the market is producing good potential price moves. This may sound like investment sacrilege, to advise people to take a break from investing, but making money in the markets require each individual’s mental capabilities to be as sharp as possible. Without some rest periods, the mind can become dull and sluggish.
Successful investing is the combination of utilizing a successful trading program and applying the correct mental thought processes to that program. Both are required.

Chat session tonight at 8 p.m. ET, open to everybody. Bring the kids. Invite the neighbors. Click here for instructions. If you already have HotComm installed, click here to connect.

Good investing,

The Candlestick Forum Team

Thanks to computers and the Internet, the trading world will never be the same. Software that has allowed for online stock market trading is now available in the commodity world and trading with Forex software has become an excellent way to trade futures. This software was designed to meet the user’s needs in several key areas. To be truly valuable, the Forex software needs to have:

• Instant Rate Availability – The Forex software for currency trading must be able to provide instant access to valuable rate information. Due to its high level of volatility, Forex news changes fast. If it takes minutes to get a quote, everything could have already changed by the time it is received. This isn’t the case; once this rate information is received, it is possible to trade at that price. Only real-time quotes allow that kind of instantaneous exchange.
• A High Level of Security – Like any other financial transaction that you perform over the Internet, security of your data is the main concern; this fact can be even more critical with your Forex software since the amount of money involved in your transactions can be very high. Successful Forex traders not only want to implement their trades, but they want to do it with the highest security. The majority of Forex software systems use at least one layer of 64-bit SSL encryption in addition to extensive procedures for data backup and recovery methods.
• Anytime Access – Commodity trading has become a 24-hour a day, 365 days a year activity. Forex trading software is available around the clock, providing updated quotes and allowing traders to initiate trades at any time during the week.

Forex Software Platforms

This is the classic discussion with any kind of software solution and Forex software isn’t any different. Forex currency trading for beginners on this type of software is the same no matter which method is used. The decision to provide service as a client-side, or downloaded, software versus web-based software is individual to each company but each will face the same main points.

• • You have more control over your data. Commodities trading with this method not only places the software on your computer, but all of your records as well. In other words, your history of futures trades will be kept on your computer and not in the manufacturer’s database.
  • Access to the markets does not depend on using a portal with the software provider. You can still access the futures markets even if the Forex software manufacturer’s website is down.Client-based Forex – This software solution means that the actual online futures trading software is located on your computer and access to the markets requires only an Internet connection, not an account on the Forex software creator’s website. The advantages of this approach are:

• Web-based Forex – This approach means that all of the operations are performed on the creator’s website and that website needs to be accessed for all operations.  The beginner investing with a system will find advantages such as:
  
  • Everything you need is located on the servers of the software creator.  You don’t have to do backups or worry if you downloaded the latest version of software.
  • If you have access to the Internet you can use the software, no matter where you are.  With this software application, you do not have to be at your own computer for trading Forex.

Today’s standard

Most software companies use web-based systems for their Forex software; freedom to access their account for trading commodities from anywhere in the world, controlled backups of data and transactions and world-class security for personal information make this the solution that is most commonly used.

Conclusion

Forex software has opened the markets to everyone. Offering research materials, current news and secure trading and investing Forex software is an excellent improvement in currency trading. 

Option trading education becomes a much easier process when utilizing candlestick analysis. Option trading education usually involves ‘implementation’ for option trades. Many investors want to obtain an option trading education as part of their investment strategy. Unfortunately, an option trading education without knowledge of the direction (or the non-direction) of the underlying trading entities is worthless. Candlestick analysis becomes the focal point for directional analysis. Once an investor learns how to use candlestick signals and trading patterns successfully, then they can add the strategies developed through their option trading education.

An investor should not make the mistake of emphasizing option trading as their primary profit strategy. Establishing an option trade should be one of the investment methods for exploiting  price moves, after the candlestick analysis has been completed. Many investors try to find a trade that will fit the option strategy that they are trying to implement. The correct option trading education is learning the different option trading strategies so that it can be applied appropriately to fit the analyzed trade.

Candlestick analysis revealed that the markets were going to sell off over the past week. This became a very simple analysis when understanding what the signals were revealing. An Evening Star signal, right at a major moving average, becomes a strong sell signal, as we witnessed in the Dow this past week. The indication of the failure of the 50 day moving average now becomes a potential bearish pattern. Utilizing this knowledge allows investors to better analyze market direction. The same patterns in individual stocks produce the same information. And, that information is reinforced with the knowledge that the market in general should be getting weaker. Shorting those positions is one strategy. Buying puts would be another strategy. Buying puts and selling calls would be yet another strategy. The candlestick signals provide the clear  analysis of when to buy and when to be sell. Your option trading education should be learning the different strategies to take advantage of price direction. The Candlestick Forum highly recommends the teaching methods of Options University. Knowing which direction a price is going to move and the knowledge to apply the best option strategy for exploiting that move (while minimizing your risk) makes for a very powerful profitable combination. 

(We have received numerous requests for information on option trading..  Be on the look out….. within the next few days I will be sending you information for a ‘pilot’ program I have been urging my friend, Ron Ianneri, to put together. I know you will be pleasantly surprised.)

Market direction

The Blue Ice Failure pattern, as described by Dave Elliott of WallStreetteachers.com, reveals that when prices fail to come up through a moving average that it just came down through, the next leg of that price move is down to the previous lows or the next major moving average, the 200-day moving average. As seen in Thursday’s trading, the Dow went down through the 200-day moving average and formed a hammer/doji signal. Stochastics are in the oversold area. Is this the bottom? Probably, or there could be some junkie trading at these levels. Click here for more trading patterns and technical analysis products.