March 17th Market Wrap-Up

Options trades at candlestick reversals produce much greater risk/reward factors. Option trades candlestick reversals allow investors to enter option trades at low intrinsic values and without excessive premiums built into the option prices. Candlestick reversals illustrate the change of investor sentiment. This allows the candlestick investor to immediately identify trade reversals that will usually expand option prices rapidly. Having the ability to recognize when investor sentiment is just starting to change, based upon candlestick signals, allows for entering option prices when the general public has not yet decided to buy. This produces a double benefit. Being able to buy options at a cheap price and benefiting from the option premiums expands when investor sentiment continues to gain confidence.

The Dow formed a MorningStar signal that closed above the T line. This was strong evidence there had been a change of investor sentiment. Although the NASDAQ did not show a reversal signal, the fact that it gapped up above the T line the next day was additional confirmation that investor sentiment had turned bullish in conjunction with bullish confirmation in the Dow. Numerous MorningStar signals have formed. Probabilities say that it is more beneficial to buy reversal signals based upon the expected results observed by Japanese rice traders over hundreds of years versus merely buying stocks that had upward movement but not a confirmed candlestick reversal signal. Go with the probabilities! The signals have proven results. Join us Saturday, March 26 and 27th for a two-day comprehensive training on identifying the signals and patterns and understanding the logic that produced the signals and patterns. This combination allows you to analyze market/price movements with the same expertise as an investor with 50 years of experience. You will get more information than you anticipate. Click here for more information.

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Good Investing,

Stephen Bigalow

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Psychology of candlestick patterns March 14th Market Direction

Knowing the psychology of the candlestick patterns is a very powerful element of investors’ trading platforms. The psychology of a candlestick pattern is that information that reveals why that pattern was formed. Investor sentiment is what moves prices! Candlestick signals and patterns are what produce the visual indications that a trend is reversing. Add high probability trend indicators such as the T line, you gain a very powerful combination. The market downtrend remains confirmed by no closes above the T line in the indexes. This greatly reduces the emotional whipsaws that might take an investor out of a good existing trade. Join us Saturday and Sunday, March 26 and 27th, for full two-day training on candlestick analysis. The information built into this training will dramatically change an investor’s perspective of what moves prices. The most consistent indicator for the past few centuries of trend analysis is human nature.

Horseradish marketing – H.J. Heinz built a successful business by putting his high-quality horseradish in clear bottles so customers could see it was not filled with sawdust. He also allowed potential customers to taste it. This is what we would like to do with candlestick analysis. If you are not a member of the candlestick forum, join us for a two-week free trial. This allows you to attend the chat rooms that are open all day, as well as receive suggested stock picks each evening, attend the Monday night and Thursday night training as well as the special members training in the evenings. Try it! This is good quality stuff.

Numerous down-trending stocks continue to produce good short trade profits. This is based upon a combination of sell signals and closes below the T line, now followed up with bearish candlestick patterns. You can learn to identify the high probability trade directions using common sense candlestick signals and pattern combinations. This is called comfort trading, knowing the probabilities are in your favor when all the confirming indicators remain in your direction.

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Good Investing,

Stephen Bigalow

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March 10th Market Wrap-Up

Japanese candlestick chart techniques incorporate a very common-sense basic aspect. Japanese candlestick chart techniques already have proven results of candlestick signals and patterns. This is from hundreds of years of observations from the Japanese rice traders identifying signals and patterns that show exactly what’s going on in investor sentiment. You do not have to have fundamental research capabilities. Japanese candlestick chart techniques are the graphics of what everybody else’s fundamental research results are producing as far as their buying or selling. Applying a very powerful trend indicator, the T line dramatically enhances an investor’s ability to identify when a signal or pattern is performing as expected. If your trading returns are mediocre because your bad trades are offsetting your good trades, candlestick analysis greatly improves your profitability. This is due to being in high probability trades a high percentage of the time. As illustrated in the market indexes yesterday, the positive trading did not produce a confirmed reversal signal. They could not close above the T line. This information allows an investor to keep from getting whipsawed out of good trades and maintaining profitable trades. Join us on March 26 and 27th for a full two-day comprehensive candlestick analysis training. This training provides investors with insights that eliminate the normal flaws of human emotions.

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March 7th Market Direction

Candlestick analysis is the graphic depiction of investor sentiment. Candlestick’s analysis illustrates the actual decisions made by the bulls and the bears. This is the basic premise of what makes prices move. Not fundamental analysis! But the perspective of buyers and sellers is based upon the decisions of their fundamental analysis. Candlestick analysis is the analysis of what everybody’s decisions are for buying or selling a trading entity. When you apply candlestick analysis to the overall market trend, utilizing candlestick sell signals and the T line, and then apply that same analysis to individual stocks, using the candlestick signals and the T line in conjunction with knowing what the overall market trend is doing, this provides an extremely high probability trading strategy. Currently, the market indexes continue to trade below the T line, forming bearish J-hook setups. This implies more downside is likely to occur. This makes being short in strong individual chart sell signals a comfortable way to make profits by having all the stars in alignment. Expect the market downtrend to continue until there is a major candlestick reversal signal in the indexes. Join us on March 26 and 27th for a comprehensive two-day training that will completely alter your perspective on what makes prices move. Whether you use candlestick analysis as your primary trading strategy or you utilize candlestick charts to enhance your existing trading program, you will definitely dramatically improve your trading abilities. Click here to register.

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Good Investing,

Stephen Bigalow

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March 3rd Market Wrap-Up

Candlestick charting explained makes analyzing price movements much easier to evaluate. Candlestick charting explained not only identifies the signals and patterns but describes the investor sentiment that created those patterns. That combination allows an investor to accurately analyze price movements with the same degree of confidence as an investor who has been investing for 50 years. Candlestick charting explained is merely the description of what investor sentiment has been doing time after time ever since the beginning of investing. This allows the investor to analyze which direction the overall market is moving. Currently, the market indexes are in a sideways mode. This is evident with its waffling at the T line area. Today’s bearish engulfing signal in the NASDAQ provides a little bit more evidence that the bears may still be in control, implying more downside. Knowing the direction of the market allows for identifying which bullish or bearish signal/pattern is likely to produce the biggest profit potential if the market trend continues in a specific direction. The bearish kicker signal is currently producing strong downside movement. Being able to correct the overall market direction and which specific stocks have the strongest signals corresponding to the market direction allows you as an investor to improve your correct trade ratio. This becomes extremely effective for both stock trading as well as options trading. If you have not yet joined the Candlestick Forum, try our two-week free membership where you gain valuable insights on how candlestick analysis constantly puts you incorrect trades. Click here to register.

 

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Good Investing,

Stephen Bigalow

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February 28th Market Direction

How does candlestick psychology benefit your trading? It allows an investor to be mentally prepared versus wondering what the next price movement might be doing. Candlestick psychology is already built into the graphics of candlestick charts. The Japanese rice traders clearly illustrate the reaction produced by human nature time after time. Currently, the market indexes started trading positive after the gap-down reversal of last Thursday. However, a market uptrend requires more confirmation, the indexes closing above the T line. Although the Dow traded lower today, it traded back up toward the top of the trading range. This indecisive trading, still trading below the T line, indicates that more bullish sentiment is required to confirm the downtrend is over. The NASDAQ did close above the T line after the strong bullish piercing signal of last Thursday. This is producing a market environment of still being relatively defensive if buying long positions. Safety stops still need to be put in place. The appearance of candlestick reversal signals at least provides a trading platform that puts the probabilities in favor of what the signals are indicating. Take advantage of the flashcards sets that show the candlestick signals in set one and the candlestick patterns, as well as Western patterns in set two. Click here for more information.

 

Having the ability to visually analyze what is expected after the appearance of candlestick signals in the overbought and oversold conditions provides a trading platform that dramatically reduces your emotional decision-making and allows an investor to trade with the probabilities in their favor. Mark your calendars, March 26 and 27th will be a full two-day training of the major candlestick signals and patterns that will dramatically improve your ability to constantly keep high probability trades setups in your favor. Click here for more information

 

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Stephen Bigalow

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February 24th Market Wrap-Up

The psychology of candlestick patterns is easily interpreted with the graphics of candlestick charts. The psychology of candlestick patterns is simple logic professed by the Japanese rice traders. Where do most people buy? They buy exuberantly at the top. Where do most people sell? They panic sell at the bottom. Candlestick charts make it very easy to see graphically what is occurring in investor sentiment. Today’s gap down in the market indexes, because of the news of war starting in Ukraine, at the end of an extended downtrend was the immediate candlestick alert to start watching for a reversal. Knowing this is what occurs in investor sentiment, the candlestick charts provide visual confirmation of when it is time to start covering short positions and going long. Today produced numerous bullish engulfing signals. The Bullish engulfing signal is one of the 12 major signals. It produces extremely high probabilities of a reversal/change of investor sentiment. Join us this Saturday, February 26 for a candlestick Mini spotlight training on the bullish and bearish engulfing signals. One aspect is recognizing the signals, which is very easy. But more importantly, learning where the signals become much more relevant for producing high probability trend reversals. These trainings digs deep into the analysis of candlestick signals to make understanding what occurs in investor sentiment much clear. Click here to register.

 

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Good investing,

Stephen Bigalow

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February 22nd Market Direction

Candlestick charts explained produces much more accurate price movement analysis. Candlestick signals and patterns are easily recognized. Candlestick charts explained is merely utilizing the accumulation of the signals and patterns that illustrate the high probability reoccurrence of investor sentiment. Identifying the candlestick signals and patterns is the first step for greatly improving profitability. The next step, the more important step, is anticipating the expected results. This dramatically improves your investment perspectives. As illustrated in the Dow and NASDAQ chart, the downtrend analysis was identified as a downtrend started and the continuation of the downtrend is better assessed knowing today’s candlestick formations did not reveal a major change of investor sentiment. This evaluation allows you as an investor to continue maintaining profitable short trades. Join us this Saturday for a candlestick forum mini spotlight training going into an in-depth study of the bullish and bearish engulfing signal. Although it is concentrating on one specific candlestick signal, the important aspect of the training is to help develop a profitable investor perspective utilizing candlestick signals. Although inexpensive, you will get much more information than you expect. Click here for more information.

 

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Stephen Bigalow

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February 17th Market Wrap-Up

How to read candlestick charts is one of the initial questions we receive when people are learning how to use candlestick analysis. How to read candlestick charts becomes relatively simple by putting common sense aspects into the visual analysis. High probability trades setups incorporate the first analysis is which direction is the general market heading. Logically, a bearish trending market would induce scanning for the best bearish trades. This is what is occurring in the current market trends. The market indexes appear to be setting up for bearish J-hook patterns. This makes scanning and identifying individual stock charts that are also revealing bearish J-hook patterns high probability trades setups.

 

Chat session tonight at 8 PM ET. Click here to register. 

Good Trading,

Stephen Bigalow

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February 14th Market Direction

Candlestick chart patterns take the guesswork out of trading. Candlestick chart patterns produce high probability expected results based upon human nature working the same way time after time. The bearish signals produced in the indexes last week made it clear that the bears have taken control. The downtrend can be easily assessed, once the candlestick signals are witnessed, utilizing the T line rule. As long as the indexes continue to trade below the T line, assume with a high degree of probability the downtrend remains in progress. Currently, there are a number of strong bearish J-hook pattern setups in progress. The validation of the J-hook patterns are enhanced with strong bearish candlestick signals, such as the bearish best friend signal. When you add the visual analysis of the direction of a signal trend with the confirmation of a candlestick pattern, you can dramatically improve your probability of being in the right trade at the right time. The candlestick signals are the building blocks for learning how to correctly analyze price and trend movements. Once you recognize the high probability signals, the 12 major signals, and you understand the logic that created those signals, you then have a grasp for how price movements work the same as a trader that has been trading for decades. Read “High-Profit Candlestick Patterns”. This will provide a very clear understanding of how candlestick analysis performs with a high degree of probability. Click here for more information

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The Candlestick Forum Team

 

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