Identifying the uptrend in a continuation process is relatively easy utilizing candlestick signals. Price movements that create patterns that are identified by most investors are confirmed more quickly when evaluating the signals that show strength at pattern breakout levels. This was illustrated in a breakout in the Dow, S&P 500, and the NASDAQ when the next wave was confirmed with candlestick bullish signals. Because candlestick signals are the graphic depiction of human nature and the T-line is a natural support and resistance level of investor sentiment, utilizing the combination provides very high probability trend analysis. The current uptrend remains in progress as it is continuing to trade above the T line. The first analysis of profitable trading is identifying the overall trend of the market indexes. This becomes much more accurate when using the information built into candlestick signals and patterns.
All boats rise in a rising tide! However, identifying the candlestick signals and patterns that produce the highest profit trade results allows candlestick investors to make much greater profits knowing that the overall market trend is continuing in a slow uptrend. The best friend signal, the J-hook pattern, and the frypan bottom are just a few of the candlestick patterns that allow for much greater profitability than merely holding stocks that are moving up slowly in a slow uptrend.GH is showing good strength because of a best friend gap up. DXC provides very strong upside profitability based upon a best friend gap up confirming a frypan bottom breakout. Because candlestick patterns produce to results, a high probability of being in a profitable price move and the results of the price moves are much greater when the patterns produce breakouts, the profitability of an overall positioning of the portfolio is dramatically improved. The percentage of correct trades are dramatically improved based upon the high probability results of candlestick … [Read More...]
Today's mild selling does not show any change of investor sentiment. The indexes continue to trade above the T-line. The lack of any substantial direction in the market indexes provide a trading atmosphere that allows each individual stock chart to be the primary analytical factor. Stay predominantly long but have safety stop's in place. When the market indexes start moving lethargically sideways, it becomes susceptible any good news or bad news to move the indexes one way or the other. … [Read More...]
November 15th Daily Market Comments
Washington politics do not seem to be an adverse affect on investor sentiment. Today's positive trading is showing strength coming out of consolidation areas of the past few days. Nothing has changed investor sentiment, the uptrend continues above the T-line. Climbing the wall of worry provides more evidence the bullish market is in progress. … [Read More...]