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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Good Investing,
Stephen Bigalow
