The combination of the market indexes produced an extremely high probability reversal. The NASDAQ had formed a potential bullish flutter kicker set up on the positive trading yesterday, opening at the previous day’s open and closing higher. The S&P 500 formed an inverted head and shoulders pattern which in the Japanese rice traders terminology is called a three valleys pattern. The Dow, after forming a long leg a Doji yesterday, opened positive today and has now close just slightly above the 50 day moving average. The choppy/indecisive nature of the market will require trading above the 50 day moving average to get it out of its choppy range. This means lower trading tomorrow continues to make the market choppiness still in place.

But these market conditions are still producing extremely strong bullish as well as bearish profitable trades setups. As demonstrated in OCGN, a scoop pattern bullish slingshot affect is in progress. Not only are these high probability directional results, but the magnitude of the profits is extremely strong. Knowing the top-ranked signals and patterns provides very strong profit potential when applying the appropriate option trade strategies to the appropriate price moves. Join us on October 23 for a full-day training on identifying the strongest signals and patterns and then applying the correct option trades to maximize profitability. This training also incorporates solidifying the mental process to be a successful trader intertwined with the analysis. This is an extremely valuable aspect built into candlestick analysis.

Chat session tonight at 8 PM ET. Click here to register.

Good investing,

The Candlestick Forum team

The evening star signal that formed in the Dow today, revealing a failure of the 50-day moving average a second time, and closing right on the T-line makes for a simple trend analysis assessment. If the premarket futures indicate a lower open tomorrow, a downtrend should be back in progress. Additional evidence was the NASDAQ closing below the T line and failing to break up through the downtrending resistance level. This visual evidence implies adding short positions on a weaker open tomorrow.

Strong sell signals as seen in CMCSA and CHGG is a high probability of short trade situations. Simple logic dictates that if you see strong sell signals in individual stocks and the market, in general, is starting to sell off again, shorting these positions produces high probability expectations. Join us on October 23 for a full-day training of identifying the top-ranked candlestick signals and patterns, the most powerful signals and patterns. Additionally, learn which options strategies produce the best results in conjunction with the strong candlestick patterns. 2+2, putting the probabilities in your favor and then maximizing profits from those probabilities.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

The graphics of candlestick charts revealed a change of investor sentiment was setting up based upon the bullish signals that had occurred over the last few days of trading. The final criteria still needed to be confirmed, a close above the T-line. The bullish sentiment that was illustrated over the past week allow investors to be prepared to start covering short positions that were in the oversold area and starting to show bullish participation. This also allowed for establishing long positions immediately if it appeared the indexes were going to start trading back up above the T line. This is where witnessing the premarket futures showing good strength allows candlestick investors to move instantly and aggressively. Having the ability to identify when a major reversal is about to occur allows for establishing profitable trades at the optimal entry points. This allows for entering profitable trades early.

Join us this Saturday for a Mini spotlight training on which options strategies to use with corresponding candlestick signals and patterns. A combination of calls or puts, with bullish or bearish spreads, is usually much more effective in profitable than merely buying calls or puts on their own. A major advantage of candlestick charts is identifying when a new price move is about to occur. Establishing the appropriate option strategy allows investors to maximize profits well diminishing risks. Click here for more information.

Chat session tonight at 8 PM ET. Click here to register. 

Good investing,

The Candlestick Forum team