Get Ahead of the Market

Get Ahead of the Market
By: www.CandleStickForums.com

We all wish we had the proverbial
crystal ball. We could see the
future, get ahead of the
market, buy stocks and sell stocks
at optimal prices, and generally
profit from trading stocks.

The fact of the matter is that we
don’t need a magic crystal ball to
predict stock prices. We don’t even
need magic. We have Candlestick
analysis! The “magic”
of Candlestick patterns has been
around for centuries.

It is based on the fact that stock
price patterns and patterns in
various markets repeat themselves.
The old saying is that those who
don’t learn the lessons of history
are doomed to repeat them.

The corollary is that learning how
stock price patterns repeat
themselves allows us to get ahead
of the market and make profits.

Stocks follow market trends, for
example. At some point a trending
market and an individual stock reach a
moment of indecision. Investors may
be looking at fundamental analysis of
the stock’s price to earnings ratio or
reading that the economy is about to
cool off and that inventories are going
up.

It makes little difference
in technical stock
trading using Candlestick pattern
formations to get ahead of the
market.

The reason for the indecision is not
as important as the fact that the
sum of all trades for the day of
all traders will often leave the
closing stock price exactly at or
near the opening price, despite
sometimes large up and down
fluctuations.

When the trader uses Candlestick
stock charts in this situation he will
enter a Candlestick signal for the day
that has a very short body, to the point
of the body just being a line. The
upward and downward wicks of the
candle body, the shadows, can be fairly
short indicating a small degree of
market indecision or fairly long
indicating a great degree of indecision.

This a Doji Candlestick signal. It is an
indicator or market indecision. In a
flat market the Doji does not really
help us get ahead of the market
because it does not indicate which way
the stock price will go. However, it is a
good indicator of a market reversal or
stock price reversal in a market that
has been heading either up or down.

Both fundamental and technical
analysis are useful as ways to get
ahead of the market. Certainly the
legwork of fundamental
analysis can give us early
information on a biotech or
computer stock with a world
changing product.

Technical analysis is the mainstay
of how to get ahead of the market
in the short and medium term.
Finding good advice can be the
important as well in how to get
ahead of the market.

Good advice comes in the form of
stock picks, stock training
webinars, and the opportunity to chat
with experts in trading stocks with
Candlestick charting techniques. To be
successful at trading stocks a trader
must be in active stocks. It is the
change in price of a stock caused
by market volatility that creates
profits.

By staying connected to the experts
in Candlestick signals at
Candlestick Forum the trader can
be in the right stock with the right
skills at the right time in order to
profit in stock trading.

Get Ahead of the Market

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