Technical Analysis Courses Should Utilize the Candlestick Signals

Technical analysis courses usually educate investors with masses of amounts of information. Technical analysis courses are usually directed towards providing numerous analytical techniques.  Unfortunately, many of these techniques are not crucial for pinpointing investment information. Most technical analysis courses instruct investors on watching indicators that other investors usually watch. The benefit of utilizing candlestick signals is being able to instantly evaluate what investor sentiment is doing at those levels that everybody else is watching.

The information that is built into candlestick signals reveal immediately what investment sentiment is doing.  If a candlestick buy signal occurs right on a major technical level, a level that many other investors are watching, the candlestick investor has the advantage of visually seeing the confirmation immediately of that level.  Other investors may require confirmation that comes in the form of additional buying.  That is a benefit to the candlestick investor.  They can get in before the rest of the technical investors get in.  There are many good technical analysis courses available. Click here to view training courses.   An investor that is planning to take technical analysis courses should learn candlestick signals before hand.  This knowledge will make any technical analysis courses much easier to comprehend.

The 12 major candlestick signals provide an immense amount of technical information. Learning the stock market becomes much easier when utilizing the correct analytical tools.  Applying the candlestick information to any information learned in technical and analysis courses will dramatically speed the positive results to investors accounts.  Learn each of the major signals.  The information that is conveyed in each one of the signals provides insights into price trends not found in most technical analysis courses.  The candlestick signals should be the basis of an investors analytical toolbox.

The Dark Cloud signal is a signal that tells an obvious reversal of a trend. It is name because it looks like a dark cloud over a nice bright sunny uptrend.

Dark Cloud



The dark Cloud Cover is the bearish counterpart to the Piercing pattern. The first day of the pattern is a long white candle at the top end of a trend. The second day’s open is higher that the high of the previous day. It closes at least one-half way down the previous day candle, the further down the white candle, the more convincing the reversal. Remember that a close at or below the previous day’s open turns this pattern into a Bearish Engulfing pattern. Kabuse means to get covered or to hang over.


  1. The body of the first candle is white, the body of the second candle is black.
  2. The up-trend has been evident for a good period. A long white candle occurs at
    the top of the trend.
  3. The second day opens higher than the trading of the prior day.
  4. The black candle closes more than half-way down the white candle.

Signal Enhancements

  1. The longer the white candle and the black candle, the more forceful the reversal.
  2. A higher the gap up from the previous days close, the more pronounced the reversal.
  3. The lower the black  candle closes into the white candle, the stronger the reversal.
  4. Large volume during these two trading days is a significant confirmation

Pattern Psychology

After a strong up-trend has been in effect, the atmosphere is bullish. Exuberance sets in. They gap the price up. The bears start to show up and push the price back down. It finally closes at or near the lows for the day. The close has negated most of the previous days gains. The bulls are now concerned. They obviously see that the uptrend may have stopped. This signal makes for a good short, with a stop being the high of the black candle day. Notice that if the Dark Cloud Cover were to close lower, below the open of the previous day, it becomes a Bearish Engulfing pattern. The Bearish Engulfing pattern has slightly stronger bearish implications.

Using candlesticks signals with other technical analysis greatly enhances the ability to recognize what the candlestick charts are revealing. Use of valuable information provided in the 12 major signals.  They will benefit you for the rest of your investment career.

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