Commodity trading software is not very effective if price trends cannot be analyzed. Whether using commodity trading software for executions, or for an analysis of commodity trends, without candlestick signals the software becomes much less effective. Keep in mind, candlestick signals were developed while trading the most basic of commodities. Rice! Japanese Rice traders analyzed and observed signals that would reoccur in price trends. Through the centuries, reversal signals and continuation patterns were discovered to work very effectively. These patterns incorporated the recognition of consistent and predictable investor thought processes. Most computer trading software does not allow the instant determination of a reversal in a price trend.
Learning how to use candlestick signals effectively will eliminate any use of commodity trading software. The analysis that can be provided by candlestick signals has one great benefit. The human mind can calculate what other outside influences might be affecting a commodity price. This is something that most commodity trading software cannot do. Being able to incorporate the knowledge that is provided by the candlestick signals while also interpreting what other outside influences may be doing to a price has huge benefits.
Having the ability to analyze whether a reversal is occurring is the primary function of technical analysis. Most commodity trading software does not have the inherent analytical processes to consistently produce profitable trading results. Utilizing candlestick signals puts the probabilities in the investor’s favor. This analysis can be applied to all commodity trades as well as stock trades. Do not depend on commodity trading software. Learning how to use candlestick signals successfully will permit any investor to successfully trade in any market in any condition. Learn the signals! They have already been proven for over four centuries of studies providing a strong statistical base.
ADVANCE BLOCK
Description
The Advance Block is somewhat indicative as the Three White Soldiers but it is a bearish signal. Unlike the Three White Soldiers, having consistent long candles, the Advance Block shows signs of weakness. The bodies are diminishing as prices rise and the upper shadows becoming longer indicate that the bulls are getting more resistance from the bears. This pattern is going to occur in an up-trend or occurs during a bounce up in a downtrend. It is visually obvious that the rise is losing its power.
Criteria
- Each white candle occurs with higher closes.
- The opens occur in the previous day’s body.
- The bodies are getting smaller and/or the upper shadows are getting longer.
Pattern Psychology
After an up trend or a bounce up during a long downtrend, the Advance Block will show itself with an initial strong white candle day. However, unlike the Three White Soldiers, each proceeding day becomes less strong. If the bulls try to take the prices up, the bears step in and take them back down. After three days of waning strength, the bears should confirm the reversal with further deterioration.
Training Tutorial
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