Futures Analysis

Futures Analysis

Bywww.CandlestickForums.com

http://www.candlestickforums.com/

Reading the Future with Japanese Candlesticks

www.CandlestickForums.com


The name is definitely appropriate; futures analysis rests

on being able predict future movements with a reasonable

level of accuracy. For many people, bar charts are their tool of choice; it is familiar for sure but it leaves its users without valuable

futures analysis information.



When reading a commodity trading chart, the Japanese Candlestick signals provide users with a big advantage

because they offer more information and predict

trends that bar chart simply can’t.



The history of Japanese Candlesticks



Japanese Candlestick signals were invented around 1700 as a method of futures analysis and developed over the past few hundred years while trading rice. The Japanese

Rice traders analyzed reoccurring signals on their commodity trading chart when trying to pinpoint the

exact times to get in and get out of rice trading.



Futures analysis with these signals made the Honshu family immensely wealthy. The signals they identified

are as effective today in futures analysis as they were

centuries ago.



Why Candlesticks are so Powerful



Candlestick signals are the only trading system for futures

analysis that considers human emotion. Emotions will always be

the same; whether you are analyzing a stock trading chart or

a commodity trading chart the same factors that have moved

prices for centuries will still be in effect today.



This is not any new; the human psyche is very

predictable when it comes to investment

decisions. Candlestick charts give a visual representation

of the investor’s sentiment to futures analysis.


http://www.candlestickforum.com/PPF/Parameters/11_268_/candlestick.asp


For futures analysis, a commodity trading

chart will show a distinct advantage over a stock

trading chart. The trends in a commodity trading chart will be more consistent, lasting for longer periods of time.



The outside influences on a commodity are dramatically less than those found in a

stock price. That can be used to an investor's advantage

when using futures analysis for a commodity trading

chart.www.CandlestickForums.com


You will find through futures analysis that most

commodities have fewer elements to affect the supply and demand than do stocks.



Grains and some of the soft commodities might have weather

affect supply; in the currency trading, different currencies may

be affected by each other. The British pound, the Eurodollar

and the Swiss franc will usually trade the opposite direction of

the US dollar.www.CandlestickForums.com


The ability to analyze a commodity trading chart very

quickly with Candlestick signals produces a huge

advantage for being able to analyze what the equity

markets would do.



Crude Oil prices, the US dollar, Gold or any other commodity that could be

affecting the direction of the equity markets can be seen and analyzed very efficiently

using Candlestick signals.



There are 12 major candlestick signals that relate

to trading commodities just as much as they do stocks; probably even more so! The bullish signals contained in

them are just as powerful and effective as the bearish

signals.www.CandlestickForums.com

http://www.candlestickforum.com/PPF/Parameters/16_332_/candlestick.asp


Demonstrating when to get into a position is very important;

however, what is more important is being able to analyze when to get

out of a position. Commodity trading information comes to

investors in different forms and different times; the analysis of that

information can be interpreted dramatically different by investors.



When the media creates euphoric buying at the top, it is hard for many investors to take profits.

What if this is the position that is going to make the big money?

Should I be buying? I don't want to be selling with all this great Wall

Street news around. Emotions such as there keep most investors from

selling at the appropriate timeswww.CandlestickForums.com


In futures analysis, it is important to avoid reacting on emotions. This

is the reason for having trading rules, a trading plan and following

the signals you find with Candlesticks. Futures analysis with Japanese Candlesticks is a highly developed means of looking into

the future.



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