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Short Selling And Short Interest Ratios Shocking Secret

Monday, March 15th, 2010

Short selling is a way to make money when a security price starts falling. When you expect a stock to fall in price, you borrow it from your broker and sell it. After sometimes buy it back in order to return it to your broker. The difference between the selling price and the buying price in this case is your capital gain.

Short selling works if the price continues to fall. If the price does not fall or retraces after sometime, you can make a hefty loss on your short position. The loans that are taken in order to go short have to be repaid! If the lender asks them or the price goes up, the trader has to buy back shares in order to make the repayment. Now, the harder it becomes to get the right number of shares in the market, the more desperate the trader will become and the higher the prices can go.

Short selling in stocks is done by investors with the expectation of a making a capital gain when they expect that stock price to go down in the near future. Short selling is also done by the fund managers to hedge their stock portfolios. Now, in other markets like the currencies, futures or the options market, you don’t have to borrow the security in order to go short. You can straight away go short by selling that security or currency in the market.

There is something very important that you need to keep an eye on when you go short selling. It is known as Short Interest Ratios. New York Stock Exchange (NYSE) and NASDAQ, both report the short interest in stocks listed on them,however, this is done on a monthly basis as brokers need sometime to collect the data of shares that they have lended to their clients for shorting. This will help you monitor the rate of short selling in the market. If the rate is too high, it means that too many investors are taking short positions and you need to avoid it.

Short Interest Ratio is very important for short sellers. Short Interest Ratio can give you important clues about other short sellers in the market. Too much short selling can only drive the stock price down.

So what is the Short Interest Ratio? Short Interest Ratio is the number of shares of a particular stock that has been shorted in the market. Plus the average daily volume for that stock in the same month and also the number of days of trading at the average volume that it would require the market to cover the short positions in that stock. It also reports the percentage change in the short positions from the previous month.

A high short interest ratio should make you nervous if you have taken a short position in that stock as most of the investors who are short will soon become desperate to dump that stock in the market and cover their short positions. The problem with Short Interest Ratio is that it is not calculated frequently. It is calculated on monthly basis. So, the trader cannot use it to gauge the short positions in the market on a daily or weekly basis. However, it can give you the general trend in the market.

Mr. Ahmad Hassam has done masters from Harvard University. Read this 49 page Quantum Swing Trading FREE Report. Turn $200 into $100K in just 3 months with this Penny Stock Trading FREE Report.

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Retirement Party Ideas

Sunday, March 14th, 2010

Everybody loves to party, including the many senior citizens within our communities. You will discover that a lot of older people maintain a love of living which few of the younger generation are able to match.

As we begin planning for a retirement party we should begin with a concept or retirement celebration strategy. Right now the first thing that you should do is always to throw several options around simply to notice what everybody thinks regarding having the party in such a fashion.

While some of you might be searching for the concept theme for the party, there can be others who will search for some retirement party ideas for meals.

One thing that you need to keep in mind is to cater for the preferences of everybody who comes for the event. So, you and your catering party will need to hunt out the many different food preferences which will need to go into the retirement celebration mix.

Other members of your retirement planning party might want to put together the music and songs, to turn the party into a really significant event.

Now start acquiring thoughts for the dancing and celebration; you will have to try to find different types of music that will complement you retirement party ideas; otherwise you’ll have total chaos. Now when all the music has been sorted out, you can begin trying to find the equipment that you need and perhaps consider hiring a DJ.

You will need to obtain your host’s approval for the retirement party ideas before you get too caught up with the organizing, The actual party can only start if your host isn’t intending on going elsewhere for a getaway!

The next item that will need to be seen to is the invitations. With no invites, you really cannot have a retirement celebration.

Once you have all the invites and other retirement celebration thoughts ready, the next phase is to actually get the party going. This is where the craziness begins and where you can see your retirement party planning coming to fruition.

Do not be late for the party you have organized, otherwise you cannot take pleasure in all your efforts to make this particular retirement party successful. Without both you and your friends, this retirement celebration would never have come to life.

So the very next time someone asks you for retirement celebration strategies - just tell them to plan on lots of fun.

Want to find out more about Retirement Parties, then visit Terry Fisher’s site Retirement Videos for all your retirement needs.

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What Does The Other Side Of The Hill Look Like For Those Of Us Getting Older

Sunday, March 14th, 2010

While you age, the idea that you might not have the ability to take care of yourself or live at home becomes clearer. The decision to give up your own home may be on the list of hardest decisions that you will ever make. But it’s a fact that you might not have to give up your home right away? It’s true. Knowing what the different aging care choices are can help you make the decision that gets you the right level of care for your stage of life.

Do not forget that in case you are selecting a health care facility or care method for a loved one, you need to be realistic. It is always hard to accurately view the health needs of a parent or relative since you want to think they are capable and in good health. But ignoring the needs of certain medical conditions, whether the wandering tendencies of an Alzheimer’s patient or the tremors of a person with Parkinson’s can actually do them harm.

Do you feel that you are in good health but need assistance with daily chores and tasks? If you’re still mentally aware, have good balance and mobility, and are not in an altered mental state, you could probably remain in your home and simply hire a nurse to come in. This can be great for some health conditions such as diabetes, where some specialised foot care may be needed but overall health is still fairly good.

You may look at a retirement residence as a good transition from your home. You want to make sure that the facility you choose has activities you will enjoy and enough privacy and independence that you will feel at home there. Look at this place as somewhere you will want to live for a long time. Health care methods and advances in medical care can keep you around for many years to come.

The next step in aging care is normally a nursing home. This is often reserved for people who are physically unable to care for themselves. You will often live in a ward, although some facilities do have private or semi-private rooms. The facilities are often set up more like a hospital than an apartment complex. They normally have ways of handling people with diseases like Alzheimer’s or dementia, since these individuals like to wander and may need watching and extra security measures.

Once aging has reached a very advanced stage, you may need to use palliative care to provide you with personal care until you pass on. This can be a hard decision to make especially since it is normally being made on behalf of a loved one, instead of by the loved one themselves.

It’s good to think beyond the immediate situation when determining whether a specialized aging care arrangement is best for your family. By studying the aging process and any specific needs you have, you can find a facility that may help you grow old gracefully and enjoy any remaining years you have.

For more information on how to protect your assets with LTC insurance and about long term care insurance visit us today. We represent 20 from the top LTCi providers.

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Up to a $2,000 Income Tax Credit for Retirement Savings Contribution

Sunday, March 14th, 2010

A taxpayer may be able to take a tax credit of up to $1,000 (up to $2,000 if filing jointly) if he or she makes eligible contributions to an employer sponsored retirement plan or an IRA. This credit is a nonrefundable tax credit. A nonrefundable credit means that the credit cannot exceed the amount of the tax liability. This credit has also been known in the past as the saver’s credit. This credit is in addition to any IRA contribution or contributions made to a qualified plan made by the taxpayer.

Where to Find the Credit - The credit is calculated based on your adjusted gross income and the your filing status. The IRS issued a tax table that indicates applicable percentages ranging from 10% to 50% to for the amount of the credit.

Eligibility In order to use the credit, the following requirements must be met:(A)You must have made a contribution to an Individual Retirement Account or qualified retirement savings plan. (B) On December 31, 2009 you are required to be at least 18 years old. (C) You must not be claimed as a dependent by another person. (D) You not allowed to be a full-time student. (E)You had to be born prior to January 2, 1992. (F)Your adjusted gross income cannot be higher than $27,750 if single, or $41,625 for a head of household or $55,500 if married filing jointly.

Distribution limitations - Distributions generally reduce the eligible contributions. The contributions taken into account in determining the credit must be reduced by distributions received by the taxpayer over a defined period, which the IRS calls the “test period”. The “test period” includes the current tax year, the following tax year up to the due date of the tax return including filed extensions, plus the two preceding tax years. However, rollover distributions and trustee to trustee transfers are not included as a reduction in the amount of the credit. Distributions from a military retirement plan do not reduce the taxpayers contribution.

When to Claim the Credit You can claim the credit on Form 8880, Credit for Qualified Retirement Savings Contributions. You can only claim the credit if you file Forms 1040 or 1040A. If you normally file Form 1040EZ then file Form 1040 to claim this credit. If you file your 2009 tax return claiming an IRA contribution that will be made in 2010, in that case the IRS permits you to consider that contribution as long it is being before the filing date of your tax return in the subsequent year, 2010 as an allowable contribution to determine the amount of this credit. The credit amount of the retirement savings contribution credit claimed by you cannot be greater than your income tax liability less foreign tax credits plus alternative minimum tax liabilities.

Tax laws are complex, change constantly and each situation is unique. This article is not intended to provide legal or accounting advice. The reader should perform his or her own due diligence and consult competent professionals in this area.

Why not learn more about how we can help you determine if you are eligible for the retirement savings tax credit and other new IRS tax credits and about our reasonably priced internet and paperless based approach to tax preparation at affordable prices. Sandor(Sandy) E. Lenner,CPA-MBA has provided accounting and business services for over 35 years and works part-time at his wife’s CPA firm .

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Where To Look For Foreclosed Homes

Saturday, March 13th, 2010

During a down real estate market, finding foreclosed homes can be easy but you can also find foreclosures in a strong market. Here is a list of the places where you can start your search for foreclosures.

Auction Houses

If you have been to a auto auction, then home auction will feel no different. Many of the auction companies hold a large inventory of properties. Since the bidding is relatively quick and houses can be sold in a matter of seconds, prices of real estate can go over market value but you can also find really good properties in their inventory.

Web Sites Of Major Banks

Major banks maintain a good list of foreclosed properties. Some maybe listed on the homepage of the company website. Visit bank web sites and check out the foreclosed properties listing, or look for linking to the company REO (Real Estate Owned) department. Sometimes you will have to do some digging…but you can find information that will lead you in the direction your looking.

Online foreclosure companies

There are companies online that specialize in listing and selling foreclosure real estate. Some charge a one-time membership fee to anyone who wishes to access the list of foreclosed properties. The good thing about signing up on web-based foreclosure companies is that once you are in, you can get a wide selection of foreclosure properties available nationwide. More often then not, you can opt in for a email update on real estate in areas your looking at.

Real estate agents

Now days most agents are either maintaining personal web sites or are under real estate companies that sell foreclosed properties. You can search them online or browse through yellow page listings. Major cities have real estate offices where you can inquire into possibility of acquiring foreclosures. A lot of agents are dealing with large volumes of foreclosed real estate these days. Seek out and ask for a agent who has a track record of dealing with both foreclosure and short sale real estate.

Real Estate “Bandit” And Listing Signs

You don’t need to look anywhere else because you can find foreclosure signs around your neighborhood. Homes with signs like foreclosure, bank repo, and bank-owned are for you to consider. These signs contain address and contact information of the agents you can visit or call. The best thing about considering homes with real estate signs is that you can actually check the condition of the house on-site. And with one phone call, you can arrange with the agent the date when you want to see the interior of the house.

Government Agencies

Fannie Mae foreclosure homes, Housing Urban Development, Small Business Association, Department of the Treasury and other government agencies have a list of real estate properties for sale. Usually, when buying a house from these agencies, you are required to acquire the services of a real estate broker or personally submit an offer. Go to any of the government agencies web sites for more information.

Doc Schmyz has invested all over the US and Mexico. His free website shares Real estate investing information for all over the US. Find real estate information by state

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A Shockingly Simple Stocks Momentum Indicator

Saturday, March 13th, 2010

Trend trading is the one of the best and most profitable trading strategy used by many traders. Infact, spotting a trend at the right time and riding it till the end can make you rich. When you are trading a trend, you are intereste din knowing how fast the trend is changing or what you may call moving whether it is moving up or down. When the rate of change of a trend goes up, it means that the price action is soon going to follow suit and rise as well!

Momentum was the velocity multiplied by the mass of the object. Now first what is a momentum? You must have read about the momentum in high school physics.Velocity was the rate of change. Now. a simple way to calculate the momentum of any security price is to divide the closing price today by the closing price ten days back and then multiply it by 100! So when we talk of momentum in trading, we are talking of the rate of change of any security prices.

This gives you the momentum indicator. If the prices didn’t go anywhere momentum indicator will be 100. If the prices went up, the momentum indicator will be greater than 100 and the prices went down, the momentum indicator will be less than 100. Now, a trend is expected to continue if the momentum indicator is greater than 100.

How do you know that the security prices will continue to rise in the future? By looking at the business fundamentals like the sales or profits, if you find them to be rising and accelerating at the same time the security price is rising,there is momentum behind this move! This momentum indicator tells you what is most likely to happen in the future not what happened in the past. So it is a leading indicator. You must have heard about momentum investing or you can even call it momentum trading. In momentum investing , you buy a security at a high price and sell it even at a more higher price unlike ordinary investing where you buy low and sell high. The trick is to know that the price will continue to rise when you do momentum investing.

Now, investors can also use momentum in their investing decisions. Momentum investors are looking for securities that are rising in prices especially if accompanies by acceleration in the underlying growth. The knock on momentum investing is that instead of buying low and selling high, your goal is to buy high and sell even higher.

Remember the Dot Com Bubble that burst and hurt many people a decade back. Lot of people were doing momentum investing without doing fundamental research on the stocks that they were investing in. So you need to do some fundamental research as well to ascertain that the rise in prices of a stock are sustainable over the long haul or not. So when you are doing momentum investing, you are looking for a security or a stock that has a potential to move big. How long this big move might take to materialize? Well, the expectation is for the big move to happen in a few weeks to a few months. Just like in ordinary physics, when a ball is set in motion, it will continue moving unless stopped. This is what the Newton’s First Law says. You can expect a security price to keep on rising as long as something drastic doesn’t happen to stop that rise. So what can be that something drastic? It can be a sudden breaking news about the misdoings of the management that have not been known to the public before. I am just giving you one example. There can be more. So before you do your momentum investing, it is always better to do some fundamental research on the company.

Now just like price momentum that we have been talking about above, we can calculate the earnings momentum. Earning momentum is the province of the investors. The investor looks at the quarterly earnings of the company to see if it is going up at a faster pace say from a steady pace of 10% a year to 12% or 15% and so on. If the earnings growth rate is going up what this means is that the underlying price is also going to accelerate.

Mr. Ahmad Hassam has done Masters from Harvard University. Get this 49 page Quantum Swing Trading Report plus the shocking Profit Button Report that applies no matter what you trade- stocks, forex, futures or options FREE. Read the story of Richard Samuels, a post office mailman with a head injury and how he made a fortune with these Neutrino Forex Signals.

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Home Security Tips - How To Make Your Home Unappealing To Burglars

Saturday, March 13th, 2010

These days everybody is anxious about the security of their homes and rightly so! According to official American government figures, the number of house burglaries has increased by nearly ten percent in the last five years to about fourteen million per year.

That is a great deal of homes. I was burgled ten years ago and I have studied and done my best to never be one of those statistics again. In this article, I will pass on some of my home security tips on how to make your home unappealing to thieves.

The first thing to think about is whether you have anything in your garden, shed or garage that will help a thief get into your home. Things like ladders, crow-bars, screwdrivers, sledge hammers. If you do, then lock them away. Keep the shed and garage doors locked at all times. If you have a ladder that will not go in the shed or garage, chain and padlock it to a brick wall, so that nobody can make use of it to get in.

Never believe that your home is less at risk just because you or someone else is inside it. Some burglars are crazy and it is easier to ask someone where the money is than to try to find it yourself. It is easier to demand the keys to the safe than to break the lock. I know. thieves came into my house while I was at work. They saw my safe, but could not get into it, so they came back three nights later when I was at home. It was truly not pleasant.

Do not put a spare front or back door key under the mat, a flower vase or near-by rock. Thieves expect people to do that and it is the first place they look. If you are thinking about leaving a key with a neighbour, pick your neighbour carefully. In fact select the family well. Does the family have teenage kids? If so, could their friends learn that that ’spare key’ is to your home? Do you trust all the friends of that children? Do you even know them?

Beware of people you do not know. I do not mean be fearful, but someone asking to make an urgent call because of a ‘breakdown’, could be casing your house or sizing you up. If you want to help, make the call for them or direct them to the nearest public telephone booth or a shop.

Keep all your doors and windows locked. If reasonable locked shut, when you are away from the house, but you can get window-stay locks so that you can lock a fanlight window ajar a few inches too. This is very helpful in the summer or if you have animals. Lock upstairs windows too - your neighbour may have a loose ladder that a thief can use.

Do not flaunt your valuables unnecessarily. Video recorders, DVD players and even the TV can be put in cabinets. Jewellery should be put in a box or a safe. Cash the same. Your house is a home, not a presentation case to would be criminals.

My last home security tip to make your home unappealing to burglars is to stay alert and to warn your neighbours of any slip-ups they are making too. If you can raise the general awareness of crime in the people around you, everyone will be a lot more secure.

Owen Jones, the author of this article, writes on many subjects, but is currently involved with wired home security systems. If you are interested in Security Systems For Home Use, please click through to our site.

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Network Marketing For People Who Know Nothing About Networking or Marketing

Friday, March 12th, 2010

The vast majority of Network Marketers fail in their first year. Of those who DO succeed, most make a paltry income.

That isn’t enough money to attract high-quality people. I doubt it’s enough to interest you, either.

So what can you do to stack the deck in your favor once you’ve caught the “MLM bug”?

Since the majority of networkers don’t make much money, the chances are pretty good that your sponsor is making less than $500 per month. Unless he or she is really savvy, they probably won’t know what to say when you tell them, “I’m not interested in knocking on doors or calling family members. I want to use the internet to build my business.”

The internet has only recently become a useful tool for building a network. It has changed the way we live, but certain recent developments have made possible for non-technical people to use it to automatically recruit and train others.

Here’s a secret your sponsor might not have told you: your product is not important to your success! Please don’t misunderstand me: unless you’re an absolute sleaze-bag, you want to represent a good product and a reputable company. (Who but a sleaze-bag would knowingly sell a crappy product from a disreputable company?)

Most networkers are initially attracted to an MLM opportunity because of the superior quality of a product. This is an important factor in choosing a company to represent, but it’s not the MOST important factor. Of course, you want to share a product you like and can stand behind. If you’re just selling something for the money, your prospects will sniff you out and know you’re insincere and they won’t listen to you the next time you have something you want to tell them about.

Your Product Is Not Important To Your Success! Products come and go. There’s a new weight-loss product every week.

There are two factors that attract people into your business. The first is the possibility of financial independence. The second is believing that you will help them succeed. The only way you can do that is if you have a simple system they can start to use right away so they have some instant success.

The number one reason for failure in MLM is that most distributors are left to figure out what to do next. They have no network and no marketing skills and they’re expected to be a success because of their passion for a product. Most sponsors have no idea how to provide a track to run on. They leave the new recruit with shopworn advice like “make a list of 100 people and start calling them”.

The old way of getting a distributor started is to tell them, “make a list of 100 friends and family, prioritize them, and call them all.” This is most people’s worst nightmare and if they ever call anyone, it’s a miracle.

The Net is the ideal tool for building a networking business. But it seems out of reach of most people because it seems like you need to be a computer wiz to create a user-friendly system. Unless you’re a high-end programmer, that’s almost impossible.

(If you’re a computer pro and you also have marketing skills I hope you WILL think about creating an automated downline building system. Let me know because there’s a huge market for a prospecting/recruiting system that non-techie types can use, and I’ll be the first!)

The best system I’ve found is a multi-part system. Part One is called Magnetic Sponsoring by Mike Dillard. Mike had some powerful insights into how people approach network marketing. He realized that most people simply don’t have the MINDSET to be successful and that mindset is fundamentally important. Not one MLMer in a hundred knows this vital piece. Magnetic Sponsoring teaches you how to quickly and easily acquire the right mindset.

Part Two is called MLM Lead system Pro, or “MLSP”. The first part, Magnetic Sponsoring, is all about adjusting and improving your thinking so that you have the right concepts and ideas firmly in place as you begin your business. MLSP is the actual “recruiting machine” that walks you through the buiding process, step-by-step.

One of the most common “blind spots” for networkers is that we can’t see the gaps in our own knowledge. We want to charge ahead and change the world (and our financial destinies) but we do so unprepared. The tortoises who prepare themselves well always outperform the impulsive hares who leap into action without knowing what they’re doing. These two tools signal the provide the competitive edge that can put any dedicated MLMer in the most-successful 5% of any company.

After struggling to build his MLM for many years, John Zehr discovered a way to attract new distributors almost magically. He’s offering free training videos that explain the “Magnetic Sponsoring” techniques in detail in a his clear and east to follow style. This and other unique content ” articles are available with free reprint rights.

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Trading Interest Rate Futures And Knowing The Yield Curve

Thursday, March 11th, 2010

Interest rates are the most important financial variable for the market and the economy. No matter what market you trade, you need to keep close watch on interest rate changes. Whether you trade currencies, stocks, futures, options, commodities, ETFs, bonds or invest in mutual funds or if you are real rich in a hedge fund, the return can be seriously affected by the interest rate changes. A Yield Curve is very important in finance. It gives you the picture of different interest rates in the economy. A Yield Curve is infact a relationship between the different interest rates and the time to maturity of different treasury bills, notes, bonds in the economy. When you trade the interest rates, you need to keep an eye on the yield curve!

When you look at a Yield Curve these interest rates are plotted on the vertical axis with the time to maturity of these financial instruments on the horizontal axis. There can be three different shapes of a Yield Curve. The Normal Curve, The Flat Curve and the Inverted Curve. Now as said before there are two types of interest rates in the economy; short term and long term. The return offered on the Treasury Bills is the short term interest rate while the return offered on the Treasury Notes and Bonds are long term interest rates. Let’s discuss these three different shapes now. On the Normal Curve, the short term interest rates are lower than the longer term interest rates as investors need a premium to invest long term. A Normal Curve represents normal economic activity where investors get rewarded for investing long term in the form of a higher long term interest rate on these financial instruments in the shape of a premium over the short term interest rates.

Now, most of the time you will come accross the Normal Yield Curve. But sometimes, you will find the Yield Curve to be Flat. When you find the Yield Curve to be Flat, it means that all the interest rates in the economy are equal. What this indicates is that economic activity is slowing down.

However, when the economy starts to go into a recession, you will suddenly find an Inverted Yield Curve. On an Inverted Yield Curve, the longer term interest rates are lower than the short term interest rates.What this mean is that the economy is slowing down and investors are reluctant to invest long term thinking it to be risky. An Inverted Yield Curve is a leading indicator of an economy doing down into a recession. When there is a financial crisis like that happened in the early part of 2008, you will find the Yield Curve to be Inverted. Investors are shying away from investing in long term projects in the economy.

If you want to trade interest rates short term than Eurodollars are the best instruments that you can trade. Eurodollars are well suited for small traders because of the low margin requirements. Eurodollars also tend to be less volatile and have a highly liquid market due to the large number of market participants. However, like any other futures contracts, Eurodollars position needs to be carefully monitored. Ten Year T Notes and T Bonds can be highly volatile. You can also trade options on these interest rates futures.

Now, when you trade these interest rate futures contracts, you need to keep an eye on the market constantly. Futures trading can be risky and in a matter of few minutes you might get wiped out in the market and get a margin call from your broker. Trading interest rate futures is no different than trading anyother futures contract. If you haven’t traded futures before, a good idea would be to first paper trade these contracts for at least two months so that you get a feel of how these futures contracts gets traded and how the market behaves!

Mr. Ahmad Hassam has done Masters from Harvard University. Know this shocking Dow Futures secret that can make you rich. Get this 49 page Quantum Swing Trading Report, FOREX-4 PACK Training Kit and the Profit Button Report that applies no matter what you trade-stocks, forex, futures or options FREE.

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Profitable Candlestick Patterns-The Bullish White Marubozu

Thursday, March 11th, 2010

Bulls and bears are always fighting for the control of the market. Candlestick charts are the best way to know who is controlling the market. With one glance on the candlestick chart, you can find out whether the bulls were in control or the bears. There are many candlestick patterns. The most basic and the most powerful candlestick pattern is the the long white candle. When this candle is formed, it means that bulls have been controlling the market throughout the day pushing the currency prices or the security prices higher throughout the trading day. This is one of the most bullish candlestick pattern to form on the chart!

As prices rise through the day, sellers do come in but not enough to stop the prices from continuing to rise. When sellers do show up during the trading day, buyers buy from them and the prices move higher.

This is an indication that the buyers are not done with their buying. The following day the bulls will still be in control and pushing the prices further higher. This is an indication of the fact that there are not enough stocks or securities in the market to satisfy the buying appetite of the investors. With high demand and low supply, the prices will continue to rise! Now, what this means is that prices have been constantly rising throughout the trading day. The closing price was equal to the high of the day or very near the high of the day.

Now, a true White Marubozu is a special variation of the long white candle with the closing price equal to the high of the day and the opening price equal to the low of the day. However, a White Marubozu may not be formed quite frequently on the chart. Most of the time, you are going to find the white long candle with a wick on either side of the candle body. These wicks will be small offcourse. What this indicates is that the closing price was close to the high of the day but not equal to it. In the same way, the opening price was close or near to the low of the day but not equal to it!

To figure out that you are indeed looking at a long white candle, determine the area covered by the body of the candle that is between the open and close. This area should be at least 90% of the distance between the high and low. If so, you have a long white candle.

On a long white candle day, a lot of price action is covered by a very short amount of time. Price action doesn’t move in one direction for that matter without retracing some part of it. This normal retracing of the price action gives you a chance to act on the signal provided by the bullish long white candle.

With long white candlesticks, the low price on the candlestick is a good support level. Support is the level where the buyers are expected to support the price of the stock or for that matter the security.

There are some variations to the bullish long white candle. Three are very important. The first is the Long White Marubozu that has no wick. It is all candlebody. This is the most bullish of the candlestick patterns. The second important variation is the Opening White Marubozu. In this case, the open price is equal to the low of the day. What this means is that the there is no wick below the candle body. The other variation is the Closing White Marubozu. In this case, the closing price is equal to the high of the day. What this means is that there is no wick on the top of the candlebody.

Mr. Ahmad Hassam has done Masters from Harvard University. Master these Candlestick Patterns with this 82 page PDF FREE Candlestick Guide! Get this 49 page Quantum Swing Trading Report plus the powerful FOREX-4 PACK Training Kit and the Profit Button Report FREE just now!

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