10 Candlestick atterns You Can Count On

By Mark Deaton

There are many candlestick patterns that have been identified and used by investors to assist in trading performance. Candlestick patterns are best used in conjunction with other analytical tools in order to produce optimum performance. 10 candlestick patterns that traders should learn for investment activities are the following:

* The dark cloud: This 2 candlestick reversal patter shows its face at the top of a bullish trend. The first candlestick matches the trend with its bullish real body while the next candlestick appears on the open to be aggressive but immediately fails and heads down to close beyond the 50% point of the first candlestick, letting us know that the reversal has started.

* Doji: You will find doji's where the open close, high and low are in close proximity. The candlestick ends up looking like a small cross. It means that the buyers and sellers are indecisive and can indicate potentially that a reversal is about to take place.

* The engulfing pattern: The classic engulfing pattern consists of two candlesticks. The first candlestick open then closes, then the second has an open and close outside the open and close of the previous candlestick, thereby engulfing the previous session.

* Evening star candlestick: This is a 3 bar bearish candlestick pattern. The first candlestick will be a rather strong white candlestick the second is a gap up short bodied candlestick indicating a weakness in bullish strength, then the final is a gap down bearish black candlestick where typically the low reaches beyond the 50% mark of candlestick #1.

* The Hammer: This is a single candlestick. The hammer is always bullish It will indicate a continuation in a bull trend and a reversal in a bearish one. It just a small body and a long tail. The tail is imply the bears trying their best to push price down and failing by end of day to keep it there.

* Hanging man: The hanging man is still a hammer, but when its on an uptrend its called a hanging man. Look to the long tail for the intuitiveness in the candlestick. Price pushed down but failed to stay there, this is bullish and so the hanging man tells us the trend will continue. A continuation candlestick.

* Harami candlestick: This is a 2 candlestick formation. It resembles the exact opposite as the engulfing pattern. This pattern will show price opening and closing within the open and close of the previous candlestick and demonstrates a potential reversal in the short term trend. This can be bullish or bearish depending on the color of each candlestick and where it appears in the trend. Each candlestick will be a different color.

* Morning Star: This formation is considered a three day bullish reversal pattern that consists of a long bodied black first day, a short gap down second day, followed by a third long white bodied candle, which closes above the midpoint of the first day.

* Piercing line pattern: This pattern is a bullish reversal pattern with two candlestick in the formation. The first will continue the downtrend. The second candlestick will gap down appearing to continue the trend but will ultimately close higher than the open and well within the real body of candlestick #1.

* Shooting star: This is a single candlestick pattern. It looks like an upside down hammer and signals a bearish reversal. As such it's best when found on a bullish uptrend. Look to the long upper witch for the intuitiveness in this candlestick. The bulls pushed hard like they did in the prevailing trend but the bears won the race by days end closing near the low / open. - 23159

About the Author:

The art of using candlestick charts and candlestick patterns is so easy with a little practice. In order to gain intuitive knowledge of how to properly apply these techniques visit us at http://www.candlestickgenius.com

Are Great Traders Made?

By Hass67

If you dont have winning forex trading plan, you will be crushed by the forex markets in no time. When you start forex trading, first you need to choose a good strategy. Then you need a method to implement that strategy. This is in nutshell what we call a trading plan.

I want to tell you about a great trading experiment that was conducted by two great traders. This experiment will teach you the importance of getting a good training in developing a winning trading plan. Read on to know about the Turtle Trading Experiment.

Richard Dennis and Bill Eckhardt were two great traders and partners who were arguing one day on whether great traders are born or made. This was the year 1983. Both were commodities speculators.

Bill was saying that great traders could only be born and not made. Richard had the opinion that great traders could be made through good training. To settle the argument, both agreed to select and then train a few traders to see the trading results after training.

An advertisement was placed in New York Times, Barrons and The Wall Street Journal. 1000 applications were received in response to that advertisement. The Turtle Trading Experiment had started.

Only 13 applicants were selected after shortlisting and interviewing 80. Those selected were known as Turtles.

The turtles were given training and a complete trading plan based on rules on how to apply it. Richard would always emphasize to the turtles that he could give these rules to anyone but these rules were useless unless they were applied consistently.

Success in forex trading will only come if you get good training. Then use that training to develop your trading plan that is based on rules that are mechanical in nature and do not depend on emotional decisions. The key to success in trading is controlling your emotions. A good trading plan just does that.

After that comes, the discipline to apply that plan in reality. Without discipline and consistency; you can never become a great trader! - 23159

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in Investing, Stocks and Forex Trading. Download Turtle Trading Rules.

Stock Trading and the Importance of Following Rules

By Jim Fredrickson

When it comes to following rules, most traders in the stock and commodity markets let it go in one ear, and out the other. This severely hinders trading. Being a good trader requires a serious amount of time and patience.

To be able to trade well in any market you have to gain the necessary skills. Don't worry, there are many good traders we can emulate. Here we will go over some great stock trading and analysis tips.

Know that in the markets you are not alone. In a sense many people are working together, buying and selling from each other, but in all reality you are on your own. No one cares about your pocket book the way you do. Be independent.

You cannot will the markets in any way. There are normal ebbs and flows of the market that you will have to learn to control the best way you can, if you are to have any success at all. You may feel totally in control of some aspects of your life, but I assure you that will not be the case always with stock trading. You have to learn to out-smart the market, in a sense.

Although you cannot control the markets every move, you can always control yourself. Be your own master. Every piece of information needs to be accounted for when making decisions on what you will do. Learn to create rules for yourself, and never vary from what you have come up with.

Stock and commodity traders alike will often venture away from their very own rules chasing after a pot of gold. Make sure to never be that person. It is natural for us to want to do that, and the freedom that you can experience as a trader, along with the occasional rush, don't help at all. Again, set rules before any trade you enter and make sure that you have a good exit strategy.

Do you know some successful stock traders? The most successful traders are consistent, organized, and follow certain guidelines in order to generate more profits. Once youre able to follow a good set of guidelines and rules, you will surely attain limitless success with very low losses.

Traders who cannot follow their own game plans are the traders who lose their shirts fast. Take it easy as you begin, risk little, and you will begin to learn how stock trading works.

If you are new to stock trading, learn the beginning steps of trading. You can find this information on the web, or in the library. Honestly, with practice anyone can become good at stock trading. Start right away by making sure you start slow and always follow your set strategy. - 23159

About the Author:

Jim Fredrickson teaches people how to buy stock and what's good about buying stocks

Beat the Stockmarket with an Automated Forex System

By James Jones

Automated forex systems are ideal for investors who are considering embarking into the world of forex trading, without having to keep up with the market movements and trading issues day-and-night. That's where automated forex systems can help a great deal

With automated Forex systems, you can analyze your Forex trading in real time and make changes to your real account - all through one application. This saves a lot of time for busy traders. Many newer systems will connect to Forex signals that are generated by the trading systems. The signals go to your real account so you can know your open positions and manage your Forex trading from one place. These easy day trade signals make management much easier from day to day when you are unable to take time to monitor all your trading systems or to open and close positions as needed. It's like having an expert advisor system right in your computer!

The forex market is one example of an area where an investor has to be very careful. There are lots of scam artists willing to sell you false automated forex systems on the internet. Wherever there is a lot of money involved, there will be criminals in the background. However, there are certainly reputable companies out there, you just need to do your research.

A good automated forex system will allow a trader to outline his trade strategies, then will automatically generate trades based on those criteria. Forex is a highly liquid market, which operates 24 hours a day so with a good system on your side, you can arrange your schedule the way you want and fit your forex activity in at your convenience. Though it conducts trades automatically, any good system will alert the investor about each trade it makes.

With an automated forex system, there's no need to work from a desk, and sit infront of a screen all day. The system does everything for you, it even works while you sleep, making trades day or night so you can sleep during the system's operating hours.

Time management is one of the keys to forex success. A solid automated forex system gives you an opportunity to save and make more money because you won't miss important trading opportunities as you would when you have to monitor your trading systems all on your own. As a professional trader, you might have multiple strategies, monitoring all major currencies, and still keep up with them all successfully when you go live. The software can trade multiple currencies and systems for you, which enables you to diversify your financial risks and smooth your equity curve over time.

You are also permited to create practice accounts. It is vastly superior to make mistakes with a dummy account than to lose your hard earned money whilst you are learning. If you are unable to create a practice account with your automated system, find a separate software program or an online application with which you can learn, prior to implementation of the automated forex system. - 23159

About the Author:

James Jones is a currency trader who operates a informative website which offers assistance, help and guidance to forex traders on forex systems and is an expert on building , testing and trading automated forex systems.

The Intelligent Way to Handle Your Savings

By Rick Amorey

The current state of the economy is far from being a secret. With seemingly endless cases of layoffs, an overall increase in prices, and payment controversies regarding insurance companies, the light at the end of the road seems distant and dim. But the hope is there, and what we must remember in this time of crisis is to keep going.

Jobs are more difficult to get these days, it's true. There are a lot of people who are now unemployed and are now suffering unemployment woes. These days, being frugal is now in and more people are embracing it, but it doesn't mean that we should completely hide away our money. We should instead find way to use even a fraction of our savings to earn a bit more. Invest in something and put that money to work.

That being said, we are in an economic crisis, so it's probably a good idea to put your savings into a low-risk investment for now. Keep in mind that a courageous backing of your investment should come coupled with common sense. If you're unemployed at the moment, then you especially cannot afford a big loss.

How will you be able to tell if an investment is as good as it seems? For that, there is no easy answer, I'm afraid; but if you put in a little time to study it, you'll learn that the world of high finance isn't as complicated as you'd think. Soon, you'll be able to judge if a deal is high-risk or safe to invest in.

Remember the fact that there really is no quick way to increase assets overnight. It will take patience hastened by a skill to notice and seize opportunities to earn big. You may also want to go for the slower and surer path, and get decent returns that will help you see through the economic crisis. - 23159

About the Author:

Do not fall for get-rich-quick schemes that are rampant on the Internet! With the help of Emini Trading, you will learn a sound, well-built plan to slowly but consistently earn more and more with trading. Be a part of the Emini Trading System now!