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The popularity of the Candlestick chart grows every day. Candlestick charts are now being offered by the most prestigious of chart service companies and brokerage houses. The list include:
Bloomberg L.P. (New York, NY) Commodity Trend Services Charts (North Palm Beach, FL); CompuTrac (New Orleans, LA); CQG (Glenwood Springs,CO) Ensign Software (Idaho Falls, ID); FutureSource ((Lombard, IL); Knight Ridder-Commodity Perspective (Chicago, IL)
The Japanese candlesticks should be used in conjunction with your existing systems of technical analysis and charting system, not as a replacement. The Japanese candlestick charts provide an extra dimension of analysis. Japanese candlestick charting had remained an uncharted territory until recently. This system originated from the from Far East dating back as earl as 1700s. The Candlestick Charting system derived from the books written by Mr. Homma.s ( Sakata Senho and Soba Sani No Den) a wealthy Japanese trader who died in 1803. It is a tradition that has evolved over the centuries through trial and error. Learning how the picturesque terms and symbols work will give us a better idea of when to buy and when to sell and of predictable trends. Based on INO Global Markets there are 18 distinct money making patterns. For your convenience I have listed them below. 1)Candlestick Lines, 2) Belt Hold Lines, 3)Counter Attack Lines, 4) Dark-Cloud Cover 5) Doji 6) Engulfing Patterns 7) Doji Star 8) Evenning Star 9) Evenning Doji Star 10) Hammer 11) Hanging Man 12 ) Harami 13) Harami Cross 14) Inverted Hammer 15) Morning Star 16) Morning Doji Star 17)Piercing Pattern 18, Tweezers.
How to search for stocks with specific patterns.
There is free software called TC2000. This software is designed to search through stocks in search of any pattern the user has sent it in search of. You can also use this software to search for any combination of candlestick patterns you choose. You can use this software to search out for those specific stocks that have the candlestick patterns you feel the most comfortable with. Using the 17 money making patterns is a good starting point for determining buy and sell signals.
Advantages of the Candlestick Charts.
Using the candlestick charts and patterns allow the investor an added advantage as buy and sell signals. The Candlestick Chart is very powerful tool when used in conjunction with traditional stock analysis tools. The same data is used to draw candlestick charts and lines as with our bar charts (that is, the Open, High, Low and Close). This is very significant. Because the charts are giving signals based on the same data but with different signals for interpretation. Most investors are looking for clear buy and sell signals that most bar and line charts do not offer.
Looking for a Breakout. Breakout is a term used to describe a specific stock whose price exceeds by far any selling price over the previous 6-12 months. The ( Breakout ) is the most sought after stock investment opportunity. Stocks can double or triple in value during a breakout. Typical signs of a Breakout occur after news suggests, a merger, the invention of a much need product or change of management. Unlike most conventional carts, there is a way by using Candle stick charts to determine a high probability of a breakout. Those conditions that determine a high probability of a breakout can than be entered into the TC2000 software. The TC2000 will then search the data base for stocks that have the particular Candle Stick patterns we are looking for. These types of technologies were not available to the average investor, until recently. These technologies were only available to investors such as banks and brokerage firms. The average (Joe) investor with little capital can now become very wealthy using the technologies available today through the internet. We now have the tools available to help us make intelligent buy and sell decisions. Extreme caution should always be used when investing.
The Candle Stick Breakout pattern.
Signs of a breakout out can be found using the Candlestick Charts. A recently discovered trend within specific types of gaps have been determined to be signal for a Breakout. These gaps can only be found on the Candlestick Charts. Gaps within Candlesticks were determine to be a time of indecision for investors for many years, until recently. Other signals such as over bought and sell out, before and after the gap help determine the breakout. There are other very important graphical indicators that can not be displayed in this article. But, they can be entered into TC2000 software as a search criteria. Once you have found your list of preferred stock, you can then match up the most favorable conditions for which stocks to buy. You can make Big Profits just by mastering these signals and gaps.
How to Use Robots.
Candlestick charts are used with, FOREX currencies, Stocks, Bonds, Futures and commodities. You will have a better understanding of how to use Robots once you understand how they think and what they are looking for. Robots such as FAP Turbo, Stealth Forex, and Auto money search for stocks and or currencies that have signals and trends that have been proven to be profitable in the past. Using charts in conjunction with your robot is an added advantage that will help you to determine a profitable trade.
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Your work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us.Candlesticks For Beginners
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