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Reading the Future with Japanese Candlesticks
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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.
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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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