Making Trend Analysis Easier with Candlestick Signals

Candlestick signal formations make trend analysis easy! The signals and patterns created by Japanese Candlesticks provide visual benefits for quickly spotting trends. The graphic picture created by these signals and patterns dramatically improves investors’ ability to correctly assess the general trend for market direction.

Candlestick signals have one major feature that makes it more influential than all other forms of technical analysis. The signal is the result of the change in investor sentiment. This statement will be repeated for effect. The signal is the result of the change in investor sentiment. Not the anticipation of a possible change!

The actual result is the change of trend direction. This investment tool can noticeably change an investor's capacity to get the most profits out of a trade, while reducing risk. It turns an otherwise average investor to the skill level of a pro..

Illustrated in the US Dollar Chart below; the candlestick signals create a quick breakdown by clearly illustrating particular candlestick reversal signals. This makes the market direction clearer to spot with a higher degree of certainty.

US Dollar Chart:

The ability to identify these statistically proven reversal patterns, and understanding how/why they were produced, provides a very powerful investment tool. Having the capability to quickly recognize these allows the experienced investor to utilize the price movements preceding a major trend reversal. This knowledge is a very accurate tool for projecting future price moves. It is simple for all investors, whether a novice or a professional investor, to greatly increase returns.

As in any investment program, the underlying motive is to find characteristics that place the probabilities greatly in the investor's favor. Logic implies that when you witness a Japanese candlestick “buy” signal in an oversold condition, you have an extremely high probability that a bullish trade will be profitable.

Being able to add other conditions such as moving averages, Fibonacci numbers, trendlines, and trading channels, to the Japanese candlestick signals only enhances the probability of making a correct trade.

Putting all these observations together provides a compelling platform for making trend analysis easier.

Stephen W. Bigalow is author of “Profitable Candlestick Investing, Pinpointing Market Turns to Maximize Profits”, “High Profit Candlestick Patterns” and “Candlestick Profits, Eliminating  Emotions.” Mr. Bigalow is also principal of www.candlestickforum.com, the leading website on the Internet for providing information and educational material about Japanese Candlestick investing.  Over 28 years of extensive study and utilization of candlestick analysis has produced for Mr. Bigalow an array of easy-to-learn educational material about Candlesticks. As one of the leading Candlestick experts in the nation, Mr. Bigalow, through consulting with major trading firms, has developed multiple successful trading programs  from the day-trader to the long-term hold investor.