Stock Market Day Trading Made Easy with Candlestick Signals

Stock market day trading works just as efficiently with candlesticks signals as they do when trading on a daily/weekly/monthly basis. Investor sentiment is as crucial a factor in stock market day trading has it is for long-term investing. The same information is revealed in a one minute and five minute time frame as the signals reveal in a daily or monthly time frame. Stock market day trading results improve dramatically when the short-term reversals can be clearly identified. The same psychology that is incorporated into investors thinking occurs in any time frame. Stock market day trading returns can be greatly enhanced using the time-tested 12 major candlestick signals. Click here for the 12 major signals special.

The candlestick signals revealed on a one minute chart can be utilized for a number of entry and exit strategies. Trading stocks or indexes using a one minute, five-minute, and 15 minute chart combination is a trading program that works very successfully. These chart combinations can be used for day trading or finding the optimal level for executing a longer term trade. A bullish candlestick signal may be followed the next day with some weakness. Utilizing the candlestick signals on the short term charts reveals when the next day’s initial selling finally ends. In an up trending stock, buying on the pullbacks becomes a very profitable technique.

Stock market day trading programs can greatly improve when applying candlestick signals, a very old and proven trading technique, with new computer generated technical analysis. David Elliott of has produced excellent technical research on finding indicator patterns that work a high percentage of the time. He’s analytical abilities have produced technical indicators that utilize the modification of the existing technical indicators.

For example, Bollinger bands do not provide a trading format to produce profitable trades. David Elliott has modified the Bollinger bands into MOBO bands, now making them effective profit making tools. His development of multiple stochastics formations produces highly effective short-term reversal setups. Applying this information with candlestick signals creates an extremely high probability trade. The melding of age old statistically proven candlestick signals with the capabilities of the indicators that are now available through instant computer analysis forms a very strong stock market day trading format.

Market direction

The Dow formed a Doji in Wednesday’s trading. The sellers confirmed the Doji at the top. A dark candle the closes more than halfway down the middle of the previous bullish candle before the Doji sets up a strong reversal signal, the Evening Star signal. The Evening Star signal reveals the expected profit taking that should come into a market after weeks of a sustained uptrend. With the Dow acting weak, revealed in a sell signal, as well as the NASDAQ acting weak, logic dictates that the sellers are starting to take control. It can be assumed that the sellers are starting to take over.

To review the full pattern description for How to Trade the Evening Star Signal –¬†click here.

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