Stay With Your Indicators

Stay With Your Indicators

The candlestick signals are statistically proven reversal patterns. The candle formations are the illustration of investor sentiment, more specifically of ac­tual investor sentiment. The financial news programs or financial newspapers are full of so-called professional opinions. Do not let others affect the analysis of a chart pattern. If you are buying based upon technical reasons, then base your selling upon technical reasons.

The advantage candlestick investors have is being able to see a graphic depiction of what the true investor sentiment of a price is doing despite all the verbal rhetoric. Quite often negative commentary will persist about an industry/sector/stock. At the same time, the candlestick signals indicate buying. The signals illustrate what is actually happening.

Once an investor learns to successfully interpret the signals and the confirming indicators, all other opinioned information will become incidental. If your indicators work successfully a high percentage of the time, follow what they express. This allows an investor to cut through all informational rhetoric.

Stay With Your Trading Program

Trading programs should be defined. If an investor does not understand what their trading program should be, they will not make money. A large percentage of investors do not have a trading program. They get money to invest, and then look for something to buy immediately.

Once you have developed your trading program, stay with it. First of all, it will help identify which trading techniques are working. To move from one investment program to another whenever something is not working never al­lows an investor to figure out how to correct what is not working.

Using the candlestick signals as a basis for a trading program allows an investor to trade and analyze the results of a signal formation. It permits an investor to stay with a trade that may not currently be producing big profits, knowing through past experience that the signals have not been negated.

Set your parameters based upon the candlestick signals. Other indicators can be applied in specific market conditions. Whether using candlestick signals or not, moving from one trading strategy’ to another will never allow an inves­tor to analyze changes that can be profitable as market conditions change.

Learn a trading strategy extremely well. Constantly tweak it as conditions change. If somebody recommends another trading strategy or system, research it before jumping into it. Once it’s researched, experiment by taking its good points and applying it to your existing trading program.

Too often investors will buy stocks based upon the availability of informa­tion when they have funds to invest with no strategy for getting in. This means there is probably no strategy for when to get out. Learn your investment trad­ing strategy well. Then start improving upon it, by integrating what you learn as you go, into YOUR own program.