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FOREX TRADING COURSE FOR BEGINNERS
reflection of investor sentiment. A Bearish Engulfing signal indicates a change of investor
sentiment. The magnitude in which the selling occurred was additional evidence that investor
sentiment had reversed. The bigger the candlestick signal, the more convincing the signal will be.
Increase your positioning of short funds in the portfolio. Simple scanning techniques will reveal
which sectors showed the most enthusiastic selling yesterday.
WHAT WILL THE NEW POLITICAL ENVIOREMENT WILL DO TO
THE SECTOR?
What outside influences could make some sectors much weaker than others? Obviously the
political stance of the new White House occupants. Are there specific sectors that do well or do
not do well under a Democratic regime? Are there sectors that have historically not done well
when the White House moves from Republican to Democrat? These questions are part of what
is called seasonality. What has historically happened in the past under these conditions?
Seasonality produces another major advantage for investors. It allows an investor to narrow in
on stocks that do well during certain political and economical conditions. It allows investor to
zero in on stocks that do well during particular times of the year. Seasonality also addresses which
sectors do well or poorly after another sector has done well or poorly. How is this benefit? If an
investor has preconceived price movement potentials for specific stocks or sectors, knowing that
those prices should move with a higher degree of probability, candlestick signals can be a great
enhancement for producing profits.
Knowing that a particular sector has a high probability of showing gains after recurring
circumstances, an investor can anticipate the development of candlestick signals. For example, if
it is a known seasonality factor that a few months after the airline delivery companies have had
good activity, strong price moves, specific sectors should be the next ones to move positively, on
a historical basis? If it is known that the trucking companies have a good probability of showing
strength based upon those circumstances, those stocks can now be watched more diligently. Will
they move positive every time after the airline delivery companies have moved well? Probably
not every time, but a high percentage of the time they will, otherwise it would not be established
in the seasonality data. The benefit produced by candlestick signals is allowing an investor to be
ready to take advantage of the trucking stock price move when the first convincing candlestick
buy signals appear. There is nothing sophisticated about this approach. It is taking advantage of
known information.
Forex Software are the leading seasonality software companies in the world. Peter Hoyt has
become extremely wealthy based upon his formulation of his seasonality software program.
Like any other trading program, it can be extremely effective if used properly. The combination
of seasonality and candlestick analysis puts extremely profitable information at your fingertips
with a very clear format on how to use it. If you are serious about staying on top of the markets,
wanting to know where the best movements will occur, do not miss to get the complete
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