Candlestick Charting Explained in Plain Language
The Japanese Candlesticks system of financial price presentation was developed centuries ago in the Japanese rice trade. One trader wanted to fashion a device for himself, whereby he might be able to determine the mind-set of other traders. He was playing amateur psychologist, for sure. At the end of a trading day, he would mark down the high and low prices of the day, the opening price, and the closing price. The direction of the trading, as revealed by the relationship of the close to the open, gave him some idea of the traders' mood that day.
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The Candlestick Reversal Pattern - Here Are the Basics
In Candlestick-land, everything revolves about the trend Reversal. The Candlesticks' main claims to fame are that they are champions at spotting reversals and that they reveal the underlying psychology of the traders, as a group. Understanding the candlestick reversal pattern as a predictor of the future direction of prices is key to making the Candlesticks work for you. It would also be well if you understand that the Candlesticks are only one tool, a powerful one, to be sure; but that the full value of their predictive capacity is realized when they are used in conjunction with a full range of other tools which are available to you.
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The Candlestick Doji - the Candlestick Reversal Pattern Everyone Loves
One Doji is "Doji." Two Doji are also "Doji." A dozen of them are still "Doji." The plural and the singular forms are the same. The Doji is a Candlestick reversal pattern in financial instrument price reporting in which the opening price and the closing price are the same, or nearly so. The Doji can have long tails, or wicks, or shadows, above and below the open/close price. The taller the tail, the more important the Doji. It appears at or near the top end of a substantial price rise, or at or near the bottom of a long decline. If it appears in mid-trend, it doesn't count for much.
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You Can Do This - Learn to Spot the Magic 15 Candlestick Technical Analysis Indicators
The world of Japanese Candlesticks does not, by any means, set itself up on a pedestal and pretend that Candlestick Technical Analysis is the be-all and end-all of everything that is valuable about the field of technical analysis. Rather, proponents of the Candlestick method of financial price reporting aver that all of the "Western" technical analysis Indicators are to be used in conjunction with the Candlesticks. The process is decidedly additive, not exclusionary. Candlestick Analysis is built upon two basic principles: (1) Candlestick patterns have forecasting value;
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Ignition of the March 2009 Rally Was Foretold by Candlestick Stock Index Reversal Patterns
The ignition was slow in coming, but all during the weeks of February and early in March 2009 our broad complement of technical indicators was warding us that pressure was building toward a hard bottom in prices, to be followed by a significant upside reversal of trend. We were watching for Candlestick stock index reversal patterns to emerge which would tend to confirm the evidence which was being thrown off by the indicators. By this time, many investors had given up during the long downtrend and had disposed of their stocks. March 5 was a strong Down day.
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Technical Analysis is a Big Tent - Candlestick Analysis is Only One of the Occupants
Proponents of Candlestick Analysis never proclaim that it is the be-all and end-all of technical analysis. That's a good thing, because rarely is a single solution the answer to a larger problem. Further, it's a frank recognition of the reality: Candlestick Analysis and all of the other ingredients which make up the rest of the body of technical analysis are mutually reinforcing. No one Indicator takes away anything from any of the others. Indeed, it is the Big Picture which emerges when combining all possible tools into one overall Master Tool that is most to be desired.
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When Did Sales Become Insignificant in Earnings?
I am not the first person to talk about the strange nature in which Q1 earnings are being interpreted by investors, however it is a bit unsettling that it is not being spoken about at length. The markets are showing unfounded positivity in the face of earnings that are shiny on the outside, but extremely dubious on the inside. I say this because a lot of the positive earnings that we are seeing are bottom-line strong and top-line weak. This is not surprising because when you end up laying off thousands of employees, your earnings look better from the lack of expenses.
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Don't Be Afraid of Taking a Risk With Your Cash
Investing is something which most people tend to avoid, as they feel it is complex and something they won't be able to do or understand. However what most of these people fail to realise is that if they are keeping their money in a bank then they are already investing their money, and so this is something everyone can do. One of the main things that puts people off traditional investing, such as betting on stocks and bonds, is the risk involved. If you make a good decision, you could end up earning a lot of money, but if you make a bad decision, then you could end up loosing a lot.
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A New Candlestick Formation Foretold the Great Rally of March 2009
Japanese Candlestick financial price recordation was invented in the rice trade centuries ago, in Japan, of course. A successful rice trader took it upon himself to devise a system which could give him clues about the mindset of his rival traders. He calculated that if could know that, he would have an advantage. The system which he formulated consisted of a vertical line showing the price range of the previous day; the open price, and the closing price. The price area between the open and the close he fattened-out into a hollow cylinder. If the close were higher than the open, the cylinder would be left unfilled, or "white.
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Top Investing Mistakes - Investing Against the Trend
One of the biggest mistakes I've made that led to big losses is betting against the trend. When I first started investing before this whole crash happened, the market was trending up, and I was successful with it. Stocks were going up, mutual funds were going up, and IPOs almost seemed invulnerable. I remember investing in Visa (V) when it first launched in March of 2008 and watching the stock sky rocket almost every day. I felt like I would never see a red and that this was my ultimate solution to early retirement. As ignorant and naïve as I was, I happened to be doing something right at the time without even fully understanding it - investing with the trend.
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