Have you ever heard of futures and the ability to enhance profits with the candlestick charting technique? There is a difference between the stock market and futures. In futures trading, you don’t really own anything as in stocks. When trading you are merely making a bet in which direction the future price will go. If you use the candlesticks technique, you should make relatively good money with a little common sense.
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There are several candlestick charting techniques that can be used to predict which way you should go to buy or sell your investments. The Doji comes to mind. If the open and close are very close together or the same, that means that the bulls and bears are at conflict and should alert the investor of a major indecision. Now, if the Gravestone Doji is formed at the open and closes at the low end of the day, occasionally it signifies the bottom of the markets. The reason it is called this is because, it looks like a gravestone. Another of the candlestick charting techniques is the long-legged Doji.
Most Japanese believe that the signal of the long-legged Doji has lost is sense of direction and to use extreme caution. Now the Bullish Engulfing Pattern is usually formed at the end of a downtrend. A white body is formed that opens lower and closes higher. This means the buying frenzy disperses the selling pressure. How does this candlestick charting technique turn potentially money eating probabilities into money-making trading profits? It’s like this, the factors of signals can be made to align elements that make optimal option trades, signals, market direction and many other factors.
A few other factors to consider are direction, magnitude, and time. In direction, you study the candlestick signals. As you figure them out, your accuracy will vastly improve your chances of making excellent choices in your investments. Now in magnitude, you will analyze a stock trade and its potential price movement. One will need to look at the speed and magnitude of the move before it can be considered be a reversing factor. Another thing to look at is the congestion levels above the reversal area. Now on to time, which is the weakest area of the candlestick charting technique, probably due to human weakness and impatience.
Time and emotion are two factors that cause investors to lose their money in at least 80% of their investments. Try not to let emotion get in the way and use the Japanese candlestick charting method to make money off your investments.