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August 4th Daily Market Comments

The uptrend continues, simple analysis, as long as the indexes stay above the T-line, especially after yesterday's gap up confirmation of the hammer/Doji signals are Friday, the uptrend will remain in progress. The patterns continue to produce good profits, Doji sandwich breakouts, wedge breakouts, fry pan bottom breakouts are all working. Stay long. … [Read More...]

August 3rd Market Direction

The positive trading, after the Doji/hammer signals created on Friday, was a strong probability indication the markets were going to be trading higher. Additionally, the bullish trading brought all the indexes back up above the T-line. The gap-up/best friend signal that formed in the Dow Today actually opened at the T-line and traded higher. This has very bullish implications. Candlestick patterns, such as the Doji sandwich, left/right combo, and the slow curve pattern have produced very strong price moves in these market conditions. Candlestick analysis allows investors to not only identify the direction of a price move but also allows for identifying the strong price move potentials. Knowing the results of a Doji sandwich creates a 2+2 analysis. This is recognizing when a candlestick signal confirmation is also going to create a good pattern breakout. This was utilized in our recommendation on APPS, a Doji sandwich signal that would indicate a breakout into new territory. Witnessing bullish signals at the breakout level of a wedge pattern will produce a high probability/high-profit trade. Our recommendation to buy on positive trading on CRTO and GSX was based upon the ultimate timing to buy as a wedge breakout was confirmed. Knowing what to expect, from candlestick signals result in executing trades that will also have strong pattern breakout results. Human nature works the same way time after time. Take advantage of the information built into each candlestick signal. This dramatically improves the probability of being in a correct trade direction as well as being in a strong profit trade.     Chat session tonight at 8 PM ET. Good investing, The Candlestick Forum team. … [Read More...]

August 3rd Daily Market Comments

The late afternoon buying on Friday created hammer signals and all the indexes. The Dow had formed a hammer signal on both Thursday and Friday, bouncing up off the 50 day moving average. Today's positive trading in the Dow has gapped up above the T line. If it closes above the T line today, this will produce a very strong bullish chart set up. A strong close in the NASDAQ will be an all-time high. The analysis is simple, as long as the indexes close above the T-line, the uptrend remains in progress. The Dow will be the one to watch. Numerous Doji sandwich formations are producing profits today.   … [Read More...]

Weekly Watch list August 3rd– August 7th, 2020

Left/right combos: CVET, PBF, NAV,SMPL. Doji sandwiches: ALT, TTWO, FSLY, AAOI, EA, AVLR Internet stocks: BILI, CPTO, SFUN,  GDDY, ANGI These can be bought based upon the markets opening positive and trading positive. The Dow traded lower most of Friday but during the final two hours, it went from a strong down move to trading up 114 points by the end of the day. The NASDAQ uses the T-line as a support level. If it opens positive on Monday, anticipate a Doji sandwich set up producing the probabilities of a Doji sandwich that would be breaking out through the recent highs. Gold stocks continue their uptrend, they can still be bought as long as they do not close below the T-line. However, watch gold prices. They have produced potential reversal signals in the overbought area over the past few trading days. … [Read More...]

July 31st Daily Market Comments

Although the NASDAQ and S&P 500 closed above the T-line yesterday, the Dow still closed below the T line. This made the sideways prognosis of the market indexes the likely expectation. The Dow continues to trade lower, probably looking for support at the 50 day moving average again, continuing the sideways drifting mode of the markets. These market conditions make individual stock movements choppy, up one day down the next, making the T-line the ultimate trend confirmation indicator. Hold long positions that have not produced sell signals and are continuing to trade above the T line. … [Read More...]