Article Content King

You are viewing: How To Use Candlestick Chart Signals To Find Profitable Trades.
By Phillip Lao

How To Use Candlestick Chart Signals To Find Profitable Trades.

Articles - Finance - Stock-Market - View Article



Publish this article

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 the 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.

See All articles From Author

I am a newbie who does a lot of studying.
Learn what I have learned for free.
Opt in for--Free Chart reading course---http://budurl.com/zkbl
Get Access to charts for free.

Article Source : http://www.articlecontentking.com

Tags: How to Read Stock Charts Stock Charts Free Stock charts

Word Count Appx. : 867 | Article Views 1002 Published 08-07-2009


Related articles
Hunter M. A. Carr - Chairman, Director, CEO, and Business Consultant
By: Hunter Carr | 15-04-2011

Hunter M. A. Carr, a lifelong entrepreneur was born in 1948. As a child, Hunter was literally addicted to the TV, endlessly watching all the serials and business news. Hunter was a college student at University of Texas at Arlington. He graduated with (read entire article)

Penny Stock Strategies
By: Spencer Soros | 03-09-2011

Why should the rich guys have all the fun? The small investor can seek out huge returns tooif they know how. Technical analysis that uses statistics for forecasting price fluctuations is one approach. However, because it is difficult

(read entire article)
How To Read 17 Japanese Candlestick Chart Signals Series 1.
By: Phillip Lao | 19-07-2009
Discover the 17 most profitable and sought after trade conditions. Enter profitable trade conditions into the free TC2000 software to search for profitable trade conditions in any media of currency you choose such as stocks, bonds, forex, etfs ,ect ,et (read entire article)
Free Money in Stock Market: Conversion
By: Alexander Chong | 09-11-2008
Article containing information about arbitrage type option trading strategy (read entire article)
How To Use Stock Charts To Configure Entry And Exit Strategies
By: Phillip Lao | 14-08-2009
This article will show you how to use just three charts for creating buy and sell or entry and exit points. This information can be entered to an existing free software program called the TC2000. These statagey can be tested for free by using FOREX St (read entire article)
Fraud in Business
By: Mark B. Lackie, CPA | 08-12-2008
Unfortunately, fraud is a fact of life in small business. Today, I am going to start a series of articles about fraud and how these frauds could have been prevented. (read entire article)
How to Make Money in the Stock Markets by Watching the Commercial Traders
By: Palmer Owyoung | 05-02-2009
This will give you an explanation of who the big players are in the stock markets and how to make money by following their lead. (read entire article)
Online Tools for Stock Market Research
By: Palmer Owyoung | 04-02-2009
This article will you some useful and powerful tools to do stock market analysis. All of these tools are free. (read entire article)
Stock-Bond and Option
By: Alexander Chong | 09-11-2008
Article containing information about types of investment such as stock, bond and option in the stock market. (read entire article)