Beware the bounce! Although some indexes and stocks are trading positive Today, they are trading below where they opened, demonstrating the bulls have not taken control. If predominately short, be patient, investor sentiment is not likely to reverse immediately.
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If you are like me, before I learned candlestick analysis, you would be sitting waiting for this market to turn around, with excruciating pain that you are still in your long positions. One of the best feelings in the world, coming from one of the worst investors in the world before candlesticks, is enjoying the downtrend because you were already predominately short. You will find that it is amazingly accurate using candlestick signals and the T-line to have your trade positions in the appropriate direction. Candlestick charts do not lie! They are the actual decision-making of investors buying and selling. Candlestick charts are merely the graphics of those decisions. Add the T-line, a natural support and resistance level of human nature, and you now have a trading platform that is extremely accurate.
A close below the T-line produces an extremely high probability result! A downtrend is in progress. The same scenario is applied to bullish trades. A close above the T-line after a candlestick buy signal produces extremely high probabilities an uptrend is in progress. Currently, the Dow and the NASDAQ are trading well below the T-line. Stay predominately short.
Good investing,
The Candlestick Forum team … [Read More...]
The T-line remains the relevant trend indicator. Although the indexes illustrated potential reversal signals at support levels, today's trading revealed the failure of the T-line again. However, the current support levels are acting as support, making the market trend extremely indecisive.
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September 22nd Daily Market Comments
The markets showed consolidation today after the big selling of yesterday. All the indexes are showing Doji type days but stochastics have not yet gotten into the oversold area. The direction of the markets will still be predicated upon how the indexes open tomorrow. T … [Read More...]