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By www.CandleStickForums.com
Successful technical stock traders
commonly use stock trading
signals to profitably buy stock and
sell stock.
This is the practice of technical
analysis which seeks to predict
stock price direction based upon
past stock prices and stock
trading volume.
Stock trading signals are effective
because stock market history
repeats itself, the market
effectively discounts stock
fundamentals, and the psychology
of investing is a major price
mover.
Using the stock trading signals in
Candlestick analysis helps traders
to profitably anticipate a market
rally, market reversal, and tell if
market trends will continue.
The investor may claim that stock
fundamentals alone drive stock
prices.
Certainly, long term investing
relies heavily on fundamental
analysis of stocks.
However, obtaining the best price
in selling stock or buying stock is
best accomplished with stock
trading signals such as
Candlestick patterns.
Although the price of a stock is
driven long term by its
fundamentals it is the psychology
of trading, as well as investing,
that moves prices minute by
minute.
Combining fundamental and
technical analysis as seen in stock
trading signals are both necessary
ingredients to success in buying
and selling stocks.
Traders use stock trading signals
to find recognizable, and
repeating, price patterns.
These patterns happen because of
changes in stock fundamentals,
the economy, and market
psychology.
However, the trader commonly
does not need to be a market
psychologist, an economist, or
expert on stock fundamentals in
order to see a pattern in
Candlestick charting.
Because patterns are repetitive the
trader knows that the first part of
a pattern predicts the last part.
Part of the skill set of an
accomplished technical trader is
to know when to interpret and act
upon an evolving pattern.
Wait too long and the anticipated
price movement has already
happened before you can
profitably trade.
Jump too soon before the pattern
is clear and you might just have
executed a losing trade.
Take online classes, trading in
simulation, and studying
Candlestick basics will help the
trader hone his skills in the
effective use of stock trading
signals.
Besides following price patterns,
stock traders use information on
trading volume as well as
information on options trading as
stock trading signals.
Trading volume often precedes
stock price movement.
When a trader sees that options
investors are buying calls much
more than buying puts they can
safely assume a positive investor
sentiment regarding a given stock.
The trader will then follow the
stock price pattern to determine if
a substantial price change is likely
and it what direction it is likely to
happen.
A trader using trading signals will
also look at investor sentiment.
When everyone believes a stock
will keep going up in price it often
means that most have already
purchased the stock.
That leaves few new buyers on the
sidelines ready to buy and drive
the price up.
When a trader sees this signal he
may watch price patterns looking
for hints of price volatility and of a
price decline.
The ability to profitably read and
execute trades based on stock
trading signals increases with
time, study, and practice.

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Stock Trading Signals

  • 2. Successful technical stock traders commonly use stock trading signals to profitably buy stock and sell stock.
  • 3. This is the practice of technical analysis which seeks to predict stock price direction based upon past stock prices and stock trading volume.
  • 4. Stock trading signals are effective because stock market history repeats itself, the market effectively discounts stock fundamentals, and the psychology of investing is a major price mover.
  • 5. Using the stock trading signals in Candlestick analysis helps traders to profitably anticipate a market rally, market reversal, and tell if market trends will continue.
  • 6. The investor may claim that stock fundamentals alone drive stock prices.
  • 7. Certainly, long term investing relies heavily on fundamental analysis of stocks.
  • 8. However, obtaining the best price in selling stock or buying stock is best accomplished with stock trading signals such as Candlestick patterns.
  • 9. Although the price of a stock is driven long term by its fundamentals it is the psychology of trading, as well as investing, that moves prices minute by minute.
  • 10. Combining fundamental and technical analysis as seen in stock trading signals are both necessary ingredients to success in buying and selling stocks.
  • 11. Traders use stock trading signals to find recognizable, and repeating, price patterns.
  • 12. These patterns happen because of changes in stock fundamentals, the economy, and market psychology.
  • 13. However, the trader commonly does not need to be a market psychologist, an economist, or expert on stock fundamentals in order to see a pattern in Candlestick charting.
  • 14. Because patterns are repetitive the trader knows that the first part of a pattern predicts the last part.
  • 15. Part of the skill set of an accomplished technical trader is to know when to interpret and act upon an evolving pattern.
  • 16. Wait too long and the anticipated price movement has already happened before you can profitably trade.
  • 17. Jump too soon before the pattern is clear and you might just have executed a losing trade.
  • 18. Take online classes, trading in simulation, and studying Candlestick basics will help the trader hone his skills in the effective use of stock trading signals.
  • 19. Besides following price patterns, stock traders use information on trading volume as well as information on options trading as stock trading signals.
  • 20. Trading volume often precedes stock price movement.
  • 21. When a trader sees that options investors are buying calls much more than buying puts they can safely assume a positive investor sentiment regarding a given stock.
  • 22. The trader will then follow the stock price pattern to determine if a substantial price change is likely and it what direction it is likely to happen.
  • 23. A trader using trading signals will also look at investor sentiment.
  • 24. When everyone believes a stock will keep going up in price it often means that most have already purchased the stock.
  • 25. That leaves few new buyers on the sidelines ready to buy and drive the price up.
  • 26. When a trader sees this signal he may watch price patterns looking for hints of price volatility and of a price decline.
  • 27. The ability to profitably read and execute trades based on stock trading signals increases with time, study, and practice.