What do candlestick charts actually reveal? NFLX beat earnings, things look great, logic says the stock should open and trade higher. But what did it do? Opened lower and traded lower. Candlestick charts show what investors are actually doing, which sometimes is completely different than what WE think a price should be doing. Let the market tell you what the market is doing. Currently the market indexes appear to be running out of steam but they are not showing any selling pressure. Stay long but be ready to take profits on long positions. This is why we recommend Trend Analysis.
October 17th Daily Market Comments
What do candlestick charts actually reveal? NFLX beat earnings, things look great, logic says the stock should open and trade higher. But what did it do? Opened lower and traded lower. Candlestick charts show what investors are actually doing, which sometimes is completely different than what WE think a price should be doing. Let the market tell you what the market is doing. Currently the market indexes appear to be running out of steam but they are not showing any selling pressure. Stay long but be ready to take profits on long positions. This is why we recommend Trend Analysis.