Beginning Investing in the Stock Market Made Easy with Candlestick Signals

Beginning investing in the stock market is usually an overwhelming process. Investors try to research a multitude of investment methods. Trying to single out an effective investing program can be very difficult. But, there is one  investment method that makes beginning investing in the stock market very easy to understand. Candlestick signals! Candlestick signals incorporate one very simple element. They are formed by the cumulative knowledge of everybody that was buying or selling that trading entity during a specific time period. This makes beginning investing in the stock market much easier to comprehend.

The candlestick signals have been a time-tested investment method, the results of centuries of observations. Japanese Rice traders became legendarily wealthy utilizing the information provided by candlestick reversal signals. Not only did the visual recognition of the signals become important, understanding why those signals were formed became invaluable information. Having the knowledge of why a reversal signal is forming provides the insights for understanding market trends. It allows an investor to eliminate the biggest hurdle for somebody beginning investing in the stock market. Emotions!

Investment patterns in the market are easily recognized. Investors throughout the centuries and throughout the future centuries will have the same emotional based thought processes when it comes to investing. The fear and greed factor. Candlestick signals are clear visual graphic depictions of those emotions. Learning what the signals represent produces a huge advantage for the candlestick investor. Learning the 12 major signals and the secondary signals produces a tremendous benefit for anyone just beginning investing in the stock market. It greatly reduces  learning  the wrong investment techniques to which most new investors are exposed . Learn how to use the candlestick signals effectively and you’ll have control of your investment future for the rest of your life.

Start your education beginning investing in the stock market with candlestick signals and their proper usage by reviewing the 12 Major Candlestick Patterns, all Secondary reversal signals, and the Continuation Patterns. Check back each week as we add new signals and patterns to continue your candlestick education.

DELIBERATION

Description

Another pattern close to the Three White  Soldiers pattern is the Deliberation pattern. It is formed by two long white bodies. These are followed by a small white candle. This last candle may have opened at or near the previous day’s close or it may have gapped up. The Japanese say that this is the time for deliberation. The slow down in the advance is time for the bulls to get out.

Criteria

1. The first two white candles are relatively equal long candles.
2. The third day is a small body.
3. The small body opened at or very near the previous day’s close. Or it may have gapped up slightly.

Pattern Psychology

After an up trend or a bounce up during a long downtrend, the deliberation signal can occur. Like the Advance Block signal, this pattern also represents buyer weakness. In this case, it shows the weakness in one day. This pattern is slightly more difficult to recognize than the Advance Block Pattern.