The continued uptrend of the markets are still a result of the bullish flutter kicker of last week. The strength of that signal allows the candlestick investor to anticipate that the top of the wedge formation is still the likely target. That allows for the expectation of additional upside for at least the next day or two. The candlestick investor also has the advantage of being able to recognize what is occurring in investor sentiment once a major resistance level is hit. Indecisive trading at that level, such as Doji’s or shooting stars, indicate a much higher probability that it is time to take profits at those levels. A breakthrough of the resistance level with a good solid candle indicates the lack of any concern for that resistance level anymore, implying more upside. Because each candlestick signal and pattern produce expected results, a trend is much more easily analyzed knowing what the nature of each signal or pattern represents.

Utilizing the information built into a pattern produces much higher probabilities of participating in a breakout price move at the appropriate time. As illustrated in our recommendation on WLH, the gap up through the resistance level confirmed the frypan bottom breakout. Being able to visually recognize today’s trading was an indecisive/Doji type day produces an extremely high probability profitable trade entry based upon a positive open tomorrow. A positive open, utilizing the Doji rule, would produce a high probability of more upside. This would create a bullish Doji sandwich breakout. When analyzing where the breakout should occur and then seeing a strong candlestick signal that would confirm a bullish breakout, the candlestick investor will not only have high probabilities of a correct trade but the additional benefit of an extremely strong price move. Combining candlestick signals with candlestick patterns produces the opportunity to participate in huge price movements based upon the results of investor sentiment.

Chat session tonight at 7pm central. Click here to register.

Good Investing,

The Candlestick Forum Team

Last week, the bullish flutter kicker signal produced very strong evidence the Bulls were stepping back in with great force. This indicated the sideways wedge formation in the indexes was still intact. That evaluation provides a strong expectation for establishing or maintaining positions in the portfolio. Investor sentiment was revealing a lack of major bullish pressure as well as a lack of a major bearish pressure in the overall market trend. This makes the analysis of each individual stock chart the most predominant factor. The lack of any major trend movement reduces the prospects that uptrending bullish candlestick patterns will be reversed due to any strong market selling. Short positions have the same results, downtrending stock positions can be maintained with the lack of any significant bullish pressure in the markets. Simple candlestick scanning techniques reveal shipping stocks as a strong bullish sector and the weed stocks are still downtrending, good short positions.

When the market indexes are in a sideways mode, the candlestick investor has a great advantage of being able to analyze which stock charts are producing pattern setups for identifying the potential of big breakout price moves. A candlestick pattern, moving up to a observable resistance level, produces an extremely high probability of a correct trade result. But more so, this set up has the prospects of producing excessive profit movements. Because human nature works the same way time after time, it produces a great advantage for the candlestick investor that understands why eight pattern is being created. A frypan bottom pattern coming up to a resistance level, as illustrated in the NVDA chart, produces an expectation of a strong breakout if that resistance level is breached. Numerous candlestick patterns, in conjunction with a candlestick signal at a breakout level dramatically improves the probabilities of being in a very strong price move.

We will conduct a “Members Only” chat session tonight at 8:00 pm EST.

Good Investing,

The Candlestick Forum Team

Today’s positive trading was well anticipated. The setup for a bullish flutter kicker was established in Wednesdays trading. The bullish flutter kicker signal is one of your strongest candlestick reversal signals. It is created when the trading gaps up to the top of the previous day’s open, which had been a bearish candle, and forms a Doji. The gap up itself was a sign of a potential reversal. Once the Doji was formed, a bullish flutter kicker signal is easily recognized as well as anticipated. The Doji rule – prices will usually move in the direction of how they open after a Doji, makes entering profitable trades an immediate process. The bullish flutter kicker signal as anticipated as soon as there is a positive open after the Doji. Knowing this signal is being created allows for establishing profitable positions upon the open.

Anticipating the market indexes are going to trade positive allows a candlestick investor to immediately establish bullish positions in individual stock charts that are also creating bullish flutter kicker signals. NVDA and AAPL had bullish flutter kicker set ups. This is where the 2+2 analysis greatly improves the probabilities of being in a profitable trade. A bullish flutter kicker signal in NVDA provided clear evidence the frypan bottom pattern was going to stay above the T-line, implying more upside.AAPL produce the same scenario, a frypan bottom pattern that would be confirmed with a positive open after yesterday’s Doji, illustrating a breakout of the observable resistance level. Candlestick charts allow for the analysis of a build up of investor sentiment, creating a candlestick pattern. Identifying a strong bullish candlestick signal at a breakout level dramatically improves being in the appropriate trade at the appropriate time. This is merely taking advantage of the consistent patterns that are created by human nature time after time.

Chat session tonight at 8 PM ET. Identifying how wedge formations produce effective breakout profits. Click here to register.

Good Investing,

The Candlestick Forum Team