Adding short positions to the portfolio was advertised in the nature of the market indexes. The last two weeks have demonstrated indecisive trading in the Dow. Although it has not yet closed below the T line, each day has demonstrated an indecisive trading signal i.e. Doji’s, hanging man signals. At the same time, the NASDAQ was starting to show indecision but has been more bearish due to it actually closing below the T line. Moving to take profits was made more obvious based upon the changing nature of the market in general. Candlestick signals and patterns provide that visual confirmation well ahead of the actual markets starting lower. The immense amount of information built into each candlestick formation allows the candlestick investor to make much more appropriate decisions well before the overall markets showed definite changes.

When the market is not showing decisive trading, especially in the overbought condition, common sense candlestick analysis allows for shifting a portfolio from predominately long positions to taking profits and adding short positions. This can be easily identified as recommended in going short on bearish chart patterns. AAPL was forming a dumpling top and closing below the T line. ARCT close below the T line last week, forming a potential bearish scoop pattern. SPCE,IMMR and PLCE became short recommendations because of closing below the T line. This is a powerful statistical probability. Witnessing a price closing below the T line dramatically improves the probabilities a downtrend is now in progress. Taking advantage of bearish patterns and a close below the T line dramatically improves profitability by having trades positioned in the correct direction. The Candlestick Forum POWER TRADE training session scheduled for this Saturday has been postponed due to Houston weather.

Chat session tonight at 8 PM ET. No registration needed, click here to connect.

Good investing,

The Candlestick Forum team

Another Doji type day in the markets. Although the NASDAQ is trading slightly positive, it is doing an indecisive trading day. The Dow is trading slightly lower but also indicating another Doji day. This indecision warrants keeping safety stops close. It also implies adding some short positions to the portfolio. Be prepared to start shifting from long to short positions. AAPL, AMZN in slow downtrends. NVDA is the only biggie trading positive. This implies an indecisive nature occurring in overall investor sentiment. Having the ability to identify indecisive trading occurring in the overall market allows candlestick investors to get prepared for shifting the orientation of the portfolio. It allows for taking profits in long positions that are starting to show weakness as well as adding short positions into the portfolio. This creates a simple common sense trading strategy, moving the portfolio toward the overall direction of the market.

SAVA provides a strong opportunity for shorting in a market that is now not illustrating any great bullish sentiment. Add the fact that it had a parabolic uptrend that is now getting sold off dramatically provides the opportunities for high probability/high-profit short positioning.

DKNG is another short position prospect based upon a strong candlestick reversal signal in the overbought condition, followed by today’s close below the T-line. LL also illustrates a high probability short trade. Note the failure at the 50 day moving average. This demonstrates a strong bearish pattern called the blue ice failure. Today’s Doji provides an excellent short entry positioning. A lower open would reveal a bearish Doji sandwich, making the 200-day moving average the next likely target. Price movement analysis is greatly enhanced by knowing what investor sentiment will produce as far as high probability trades signals. Join us in the Candlestick Forum chat room where numerous eyes identify the high probability trades setups.

The McMuffin pattern demonstrated the uptrend in the market indexes were going to continue. This knowledge allows for taking advantage of huge potential price moves. Pattern breakouts are not going to be inhibited by any concerns of bearish sentiment in the markets. This market condition allows for the breakouts to produce inordinately strong profits. Candlestick simple scanning techniques pinpoints where these strong price moves are likely to occur, candlestick pattern breakouts. This is been illustrated numerous times over the past few weeks with daily returns on individual stock charts producing 15%, 30%, 50% profits, with our position in OCGN up 201% today. Have you often wondered how other investors seem to be participating in the big profit moves? Candlestick charting techniques allow YOU to be in the big profit moves!

The big percentage move over the past five trading days in OCGN is producing the GME affect. Investors are seeing strong price moves occurring in the biotech stocks, especially those associated to the vaccines. This is producing good profit trade set ups in other biotech stocks. Investors not wanting to miss out! When you utilize the candlestick patterns, you have to major benefits! First, the candlestick breakout signals indicate when something new is occurring in a specific company and secondly, the RARE process allows investors to research what was causing that new breakout interest in the stock price. This simple combination dramatically improves the probabilities of being in the right place at the right time. Stocks such as CLSN, VBIV, ENLV and LIFE have dramatic upside potential. The Candlestick Forum has been advocating being heavily invested in the electric vehicle sector as well as the biotech sector. Candlestick scanning techniques immediately identify which stocks have new bullish sentiment coming into the price with great enthusiasm.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team