What are the candlestick charts revealing about investor sentiment/market direction? Simple, the market does not know which way it wants to go, indecisive trading. In these conditions, reliance on the T-line is important. Utilizing patterns becomes a much more stable trading platform because of the inherent investor sentiment that builds up to create a pattern. Did we know there was going to be a buyout in CBLK? No, but the scoop pattern was a good indication bullish sentiment was coming into the price move for some reason. … [Read More...]
Are you like most investors, that seem to get whipsawed out of a positions when things do not look good? Fortunately, candlestick analysis greatly reduces emotional decision making. Today, the Dow traded higher on the open. But the fear factor of the inverted yield curve, short-term bonds producing a higher yield than longer-term bonds, promotes the possibility of a recession. After trading positive in early trading, the indexes started trading lower. This usually knocks out the week traders. Because candlestick analysis utilizes visual indicators, the T line provides a very significant trend indication. Utilizing the simple T line rule, the uptrend remains in progress until witnessing a sell signal and a close below the T line keeps the candlestick investor from panic selling at the wrong times. Note today's trading in the Dow bounced off the T line and started to move back up. The reason this is significant is that the T line is used by an in an orderly small percentage of all investors, so small that it should be categorized as nobody uses the T line. That means it is not be in watched as a potential target. When prices support and resist as often as they do at the T line, it provides additional confirmation of the graphics of investor sentiment, candlestick signals, with the T line's natural support and resistance level of human nature.
Utilizing the T line as a trend indicator allows the candlestick investor to keep from getting scared out of positions. The simple trading rule is that as long as there is not a candlestick reversal signal and a close below the T line, and uptrend remains in progress. Add the factor that the market indexes have produced strong bullish signals over the past week of trading allows for waiting to the end of the day to make any major decisions about closing out positions. Candlestick patterns are the product of human nature reacting the same way time after time. As illustrated in our recommendation on CBLK, identifying the … [Read More...]
Today's consolidation has pulled back and use the T-line as a support level in the Dow, the 3T-line in the NASDAQ and S&P 500. It will be important to see the indexes remain above the T-line. Today's recommendations are showing maintaining strength, not necessarily to be bought yet, but indicating that when the consolidation in the markets are over, these positions should act very well. As long as the indexes currently stay above the T-line, anticipate the uptrend remaining in progress. … [Read More...]
August 23rd Daily Market Comments
What are the candlestick charts revealing about investor sentiment/market direction? Simple, the market does not know which way it wants to go, indecisive trading. In these conditions, reliance on the T-line is important. Utilizing patterns becomes a much more stable trading platform because of the inherent investor sentiment that builds up to create a pattern. Did we know there was going to be a buyout in CBLK? No, but the scoop pattern was a good indication bullish sentiment was coming into the price move for some reason. … [Read More...]