Identifying Stock Price Reversals

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  • 1. Identifying Stock PriceReversalsBy:

2. Identifying stock price reversalscan be the key to successful stocktrading. The tools needed foridentifying stock price reversalsare, if fact, centuries old.By: 3. Candlestick charting goes back toJapan in the days of the Samuraiwhen rice commodities tradersrecognized repeating patterns intrading.By: 4. By using these repeating patternsthe traders were able to profit inidentifying coming markettrends and market reversal.By: 5. Traders today canlearn Candlestick patterns andprofit from trading Candlestickpattern formations.By: 6. An excellent means of learningCandlestick signals and how to tradethem for profit in trading stocks isthrough online training webinars.Through the give and take of basicstock market training online the traderwill learn Candlestick chartingtechniques in a thorough andcomprehensive fashion.By: 7. The result can be profitable tradingwhether it will be identifying stockprice reversals or correctlyanticipating the continuation of aprice trend.By: 8. Candlestick signals are effectivetools for trading stocks because oftwo reasons. They can accuratelypredict future stockprice movement.By: 9. They are also easy to read visualsignals that cut through thecomplexity of technical analysisand give a clear indication of whatis coming next in the stock price.By: 10. Because Candlestick signals readmarket price changes they are alsouseful in commoditiestrading, futures trading,and options trading, as well astrading the stock market directly.By: 11. A trader who learns his Candlesticksignals and patiently applies thisknowledge will find himself to bemore successful in identifyingstock price reversals and profitingin stock trading.By: 12. An important factor in identifyingstock price reversals is whether thereversal is short term of a basic seachange for the stock in question. Ahot stock will commonlyexperience price corrections on itsway up.By: 13. Traders and short term investorswill engage in profit taking. Thispractice is typically a healthy thingfor the market in general and forthe stock price in particular.By: 14. An old saying is that you donthave a profit on a stock until youtake the profit on the stock. Oldhands in the stock market willcommonly take a little profit alongthe way even when they believethat a stock is going to be going upfor some time.By: 15. The point of differentiatingbetween a market correction andthe development of an oppositetrend is that the trader will want tobe out of his current positionentirely if the stock is changingdirection.By: 16. If the stock is just experiencing ahiccup he or she may increase along position in the stock ora short sell position if the stocksbasic direction is downward.By: 17. For the long term investoridentifying stock price reversals ina bull market allows the investorto sell stock or to buy puts on thestock thereby hedging his position.By: 18. In a bear market the investor willlook to identify a price turnaroundin order to buy stock at the lowestprice and sell later when the priceis about the reverse again.By: 19. The investor can also profitby buying calls on stocks afteridentifying stock price reversals ina bear market. Many cyclical stockscan be traded this way forrecurring profits.By: