Profitable Candlestick Charting
Candlestick charting to keep your wealth in an uptrend
Candlestick signals help profit from falling markets
Many traders and investors are afraid or uncomforatble playing the market to the downside. It is an in-built human emotion. We have always been trained to think of prices going up and making a profit. The concept of selling short and profiting from declining prices is relatively new to human thinking. Mass media has also given shorting a bad reputation. They played on emotional and ethical reasons...how can traders make money at the expense of companies which provide jobs to people?
Well...Trading is initiated only for making a profit. It does not matter if profit is being made when stock goes up or stock goes down. The only important thing is to have a trading system in place to handle the inevitable stop-outs. Candlestick chart analysis makes it a breeze to design a trading system which works equally well in a sliding market as it does in a rising market.
Consider the chart of POLARIS below. The stock formed a Dark Cloud candlestick signal in mid-January. One essential piece was missing in this scenario...confirmation of the signal. A couple of days later, the stock formed a Bearish Harami. The bears were able to demonstrate control and confirm this Harami. This set an ideal place for selling short the stock.
Chart courtesy icharts.in