Dear SpikeTraders,

I am new to trading and have been struggling to find my strategy and get my admin in order. So I thought I would stop trading even in the very small amounts I am doing. I have been struggling with the MACD and how to work it. I decided that I should go back to the very basics and look at candlestick charts and found a book called Intro to Candlestick Charts by Clive Lambert. This is very basic but I have found it great. I have found that using black and white candles suites me better than colours that I find distracting.

I love the psychology of the candlestick charts and this has given me an insight into what is happening in the market and now hanging man and shooting stars are a great way of breaking down charts. Once I have understood this I intend to learn a bit About MACD and add this to my analysis.

I am also operating from England and some of the smaller companies are not available for me to trade. I am not unpleased with this as it will force me to look at a small number of companies for a start. Taking my inexperience into account I thought this might be of interest to some of you.

3 companies have come onto my radar almost all together as shorts Boeing, Apple and Dendreon and in that order.

Hanging men are formed in an up market. The first is at the end of an uptrend and did signal the start of a downtrend the middle 3 had mixed results but I say they are in a downtrend and therefore not hanging men. Now we look to today and why I am so excited about this short. We have a triple top and 2 hanging men. The Bears are resisting any move higher and the bears are also trying to move the market lower and failing. However the bears are coming alive and any day now we could move lower.

The next example is Apple. There are not so many signals here but again the bears are waking up the hanging man is at the top of a fast uptrend and this is the first move the bears have made. I will need more bear signals before I move but this is in my radar.

The final company is Dendreon. This is very similar to Boeing with a triple or quad top showing the bears are digging their heals in and stopping the market going higher. After that the bears are testing the market with examples of both the Rickshaw and Hanging man. These have both failed so far.

I may be seeing something that does not materialize but this market just requires more volume to confirm the down signals and I am going to re-enter this market as a short.