Following the Footsteps

Following the Foot-Steps of Candlesticks

Candlesticks translates into the Japanese term Nihaba Ashi which means Foot Prints or Foot Steps. The Japanese believe the candlesticks follow the markets price activity and will typically generate patterns at each turning point of the market. Investors use these pattern to assist in identifying the turning points of the markets and to attempt to effectively trade these market trends.

The previous examples have hopefully illustrated how the candlesticks, as well as the other investment models included within the PFP software, will attempt to automate the process of identifying the pattern formations and using its internal ability to judge the patterns probability, generate a buy or sell signal. The PFP program, like any other investment analysis program, is not 100% accurate all of the time. At best, the PFP program will average 70 to 80% accuracy and on average will be 50 to 70% accurate. As I continue to develop the PFP software application, I will attempt to increase the accuracy of the program to the point that (I hope) the system will become one of the most accurate systems in the world. This new release of the PFP software (code named Vancouver) is my most recent attempt to improve the accuracy of this software application. I hope the inclusion of the four new investment models (the revised BLAM system, the Fractal system, the Adjusted Stop Level Breakout system and the BLM Indicator system), the three new technical indicators (derived from existing technical indicators) and the inclusion of the Vision Flags which graphically represent where and when the investment signals have formed on the chart, will be considered a great improvement by the users.

Candlesticks are a superior method of charting compared to bar charts and provide investors with a much greater ability to see the markets characteristics within the chart. I believe that any investor, after learning a thing or two about candlesticks, will understandably choose to continue using candlestick charts. The examples included herein should have provided enough evidence of the abilities and benefits of the candlesticks, and should have also provided enough insight into the basic investment technique used by professional investors that anyone using this software for the first time will be able to quickly learn and understand these techniques for investing.

Spend some time applying the techniques discussed herein and using the PFP software application. The PFP software application is an excellent teaching tool that will quickly teach anyone to recognize, understand and trade using Japanese Candlesticks and the other investment libraries. Investors should also investigate the Trending Candle / Body Reversal investment system because it embodies many of the same principles used in the analysis of Japanese Candlesticks. As well, investors should continue to investigate the other investment analysis models and the breakout models because they help to overcome the short-term nature of Japanese Candlesticks.

As you continue your endeavors to learn and invest using candlesticks and the other techniques included within the PFP software application, remember this phrase…

One man can't move a mountain, yet one man can create a path so that others can travel across the mountain - create you own unique path with the information contained herein.

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