What is the best stock market investing guide? An investment method that has common sense investor intelligence built in. This is exactly what the candlestick signals provide. Most investors do not have a stock market investing guide. They will try anything that promotes high profit results. They move from one technique to the next not ever finding an investing technique that works. What should be used as a stock market investing guide? A technique that is proven. A technique that can be easily learned.
A technique that once you have learned it, can be applied to any trading market or any market conditions.
Candlestick signals are the cumulative knowledge of everybody that is buying and selling a trading entity in a specific timeframe. The Japanese Rice traders not only identified the change of investor sentiment in a trend, being able to pinpoint the reversals of a trend, they also learned what the investor sentiment was doing to create that reversal. This information becomes very powerful for the investor. If an investor has a stock market investing guide that not only illustrates when to buy and when to sell, but also educates the investor as to why they are buying and selling, this provides the knowledge to successfully trade any market.
Learn how to use candlestick signals correctly. Having the ability to understand why the signals work creates the investment knowledge to give an investor full utilization of their investment abilities. The major signals have powerful implications. The secondary signals also provide valuable information. Using the signals as a stock market investing guide will provide a comprehensive investment format. An investor can apply candlestick signals as the basis for any other trading technique. Learning the candlestick signals allows the investor to gain insights into market trends that are not available with any other trading techniques.
This week's signal - Trading the Belt Hold Pattern - Reversal Signal
BELT HOLD
The Belt Hold lines are formed by single candlesticks. The Bullish Belt Hold is a long white candle that has gapped down in a downtrend. From it’s opening point, it moved higher for the rest of the day. This is called a White Opening Shaven Bottom or White Opening Maruboza. The bearish Belt Hold is just the opposite. It is formed with a severe gap away from the existing uptrend. It opens at it’s high and immediately backs off for the rest of the day. It is known as a Black Opening Shaven head or Black Opening Maruboza. Yorikiri, a sumo wrestling term, means pushing your opponent out of the ring while holding onto his belt. The longer the body of the Belt Hold, the more significant the reversal.
Criteria
1. The candlestick body should be the opposite color of the prevailing trend.
2. It significantly gaps open, continuing the trend.
3. The real body of the candlestick has no shadow at the open end. The open is the high or low of that trend.
4. The length of the body should be a long body. The greater the length, the more significant the reversal signal.
Signal Enhancements
1. The longer the body, the more significant the reversal pattern.
Pattern Psychology
After a strong trend has been in effect, the trend is further promoted by a gap open, usually a large gap. The opening price becomes the point where the price immediately moves back in the direction of the previous close. This makes the opening price the high or the low for the trend. This causes concern. Investors start to cover shorts or selling outright. This starts to accentuate the move, thus reversing the existing trend.
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