A strong trend indicator is one that works an extremely high percentage of the time. A strong trend indicator that works in conjunction with candlestick signals is the T line. The T line produces a very high probability factor. You do not have to take my word for it! Put the eight exponential moving average on your candlestick chart and notice how often it acts as a support level in an uptrend or a resistance level in a downtrend. You can easily back test it. The most powerful element to this strong trend indicator is the number of times prices reverse right at the T line. The reason this is relevant is that nobody has the T line on their charts. It is not like everybody is waiting to see what it does at the T line. The T line becomes extremely effective for keeping investors from being whipsawed in and out of trades. Here is one of the most powerful statements for trend analysis. If candlestick signals are the graphic depiction of investor sentiment and the T line acts as a natural support and resistance level of human nature, a Fibonacci characteristic, adding the two together produces an extremely powerful trend analysis combinations. Join us on the www.candlestickforum.com. You will see a dramatic improvement of your trading analysis.

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Stephen Bigalow

Profitable short trades are enhanced when correctly analyzing the overall market trend. Profitable short trades are confirmed utilizing strong sell signals and trading below the T line. As illustrated in CVNA , a strong downtrend is in progress with the evidence of a bearish kicker signal. Strong sell signals, even during a downtrend, provides evidence the bears are still in strong control. Obviously, remaining in short trades has produced excessive profits during this current market downtrend. When will there be a bottom to this market? You do not have to guess at that answer when utilizing candlestick reversal signals.

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Good Investing,

Stephen Bigalow

Big profits in a downtrend is simplified using candlestick indicators. Big profits in a downtrend can also be maintained using the T line rule, keeping your emotions from taking profits to soon. As witnessed in the market indexes and numerous individual stock charts, the bearish J-hook pattern indicated high probabilities of a wave three to the downside. Knowing the magnitude of wave three, be in the same as wave one, allows the candlestick investor to remain in profitable positions overriding emotional decisions to take profits merely for the sake of taking profits. A major benefit of candlestick analysis is implementing the sage advice of cutting your losses short and letting your profits run. Candlestick charts make that process very easy to implement. The graphics of candlesticks dramatically improves your ability to keep your emotions out of your trading. The current market trend, although in the oversold condition, has not yet showing any signs of a bullish reversal. Is the oversold condition relevant? Of course, but if investor sentiment does not show any change, a market/price trend can remain oversold for many weeks or months. These are market conditions that allow for very attractive put spreads.