Candlestick analysis provides a completely common sense perspective of what price movements will be doing, It does not rely upon projections of which stocks/sectors are going to move bullish or bearish and then waiting to see if those projections are correct. Candlestick analysis is the immediate graphic evaluation of which stocks and sectors are getting bullish or bearish sentiment. This is been illustrated during the current market trend. Although the slow uptrend of the indexes has experienced an oscillating trend movement, specific sectors have clearly shown strong bullish or bearish trend movement. Gold and silver stocks have been exhibiting strong bullish charts, correlating with the strong bullish commodity charts of gold and silver. Crude oil stocks have produced good short trades corresponding with the strong current downtrend of crude oil. Producing consistent profits is not a difficult process when using candlestick analysis. It is merely learning the signals and patterns that are created by reoccurring human nature investment decision-making.

Recognizing the strong chart patterns produces two basic results. First, it puts investment funds in the correct direction of a price move and secondly, the price moves are usually inordinately strong. A slow uptrend in the overall market creates slow uptrending price moves in most individual stocks. Taking advantage of the information built into candlestick patterns allows for producing inordinate profits during that same market price move. Currently numerous frypan bottom breakout’s and J-hook pattern breakouts are creating big profits. Once an investor learns a simple techniques for analyzing the overall market trend, they produce the opportunity to make big gains in candlestick chart patterns that are corresponding with the overall market trend. Simply stated, candlestick analysis puts investment funds into the appropriate positions with a high degree of probability.

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Good Investing,

The Candlestick Forum Team

Candlestick charts not only reveal the immediate price movements based upon investor sentiment but candlestick charts also allow for a much more accurate evaluation of what investor sentiment is going to do in the near future. This is extremely valuable for these market conditions. The market indexes have moved into new high territory, all-time high territory. Will the markets go higher? A large percentage of investors rationalize that if the markets are at all-time highs, it is time to take profits. Candlestick charts reveal a completely different evaluation. A J-hook pattern was formed in the Dow right at the breakout area of new highs. Understanding the results of a J-hook pattern made it very clear that there was buying expectations based upon the J-hook pattern that indicated the recent highs were still going to have more upside. Analyzing investor sentiment based upon candlestick charts allows for logical analysis of a price trend, eliminating the ill rational emotional expectations. If a J-hook pattern reveals more upside through the breakout area, the longer-term charts can then be analyzed with much more accuracy. The Dow has moved sideways for the past 18 months. The current breakout of that resistance level indicates a high probability the next wave may be in progress, producing the potential of another strong upside market on the basis of the first wave prior to the 18 month consolidation.

Having a strong probability analysis of the overall markets allows for aggressively participating in the strong candlestick chart patterns. This allows for taking advantage of pattern breakouts such as frypan bottoms and J-hook patterns. Individual stocks can produce extremely strong profits with pattern breakouts that do not have the dampening a fact of selling indications in the general market. Adding all these elements together allows an investor to put positions together that have high probabilities of producing high profit trades. Remember, this is based upon one simple factor. Human emotions produce the most reliable chart pattern indicators in the world.

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

Good Investing,

The Candlestick Forum Team