A stock market reversal is much more easily identified when utilizing candlestick signals. Today’s stock market reversal was demonstrated after the Dow formed three indecisive trading/Doji days in the oversold condition. Although today’s positive trading in the Dow did not close above the T-line, the NASDAQ and the S&P 500 closed above resistance levels. Gaining a much more accurate perspective of the change of investor sentiment allows the candlestick investor to utilize pattern buildups such as the fry pan bottom pattern. As demonstrated in the AMD chart, the fry pan bottom pattern was enhanced with the stock market reversal. The stock market reversal was likely the relief of a bank crisis expanding. Today’s candlestick signals would imply at least a bounce to the upside. However, the overall market trend is likely to be influenced by additional information regarding the Fed increasing interest rates and inflation expectations. Fortunately, as an investor, you do not have to analyze what each action may do to the market trend. The candlestick charts will reveal what investor sentiment is doing. Join us Saturday, March 18, for a full-day multi-speaker symposium at the candlestick forum. Click here for more information. This allows investors to analyze professional traders’ trading strategies side-by-side to get a more comprehensive analysis of which strategy best fits their trading nature. Also, join us on March 25 for a full training day on the appropriate option strategies with specific candlestick signals and patterns. This will give you insights as to how to utilize option strategies with much more clarity.

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

Good Investing,

Stephen Bigalow

Is there a bank crisis? Could a bank crisis escalate? The answer is not important!. The analysis of what the market thinks the results will be is the important factor.

With the Fed raise interest rates at the same pace, or will they slow down the rate of rate hikes? That is not important! Candlestick analysis reveals what investor sentiment is doing based on all the possibilities. Fortunately for the candlestick investor, candlestick patterns such as the dumpling top provide a precursor for what investor sentiment is likely to be doing. The strength of a downtrend from a dumpling top allows for preparing for the next good trade setup. As an options trader, this information produces a high probability of expected results. Candlestick analysis indicators confirm the current market downtrend. The bearish candlestick patterns remain in effect with the additional confirmation of the indexes continuing to trade below the T line. Take advantage of this information. It allows investors to maximize their profitability by utilizing the appropriate options at the appropriate times.

The best trade entries are produced by candlestick signals and patterns. The best trade entries utilize pattern setups followed by individual candlestick signal confirmation. Currently, the market downtrend was easily recognized by the evening star failure of the indexes at the resistance levels, the Dow failed at the 50-day moving average, and the NASDAQ failed at a down-trending resistance level. The visual graphics of candlesticks allow an investor to identify when the market is merely bouncing versus having a full-scale reversal signal. The bearish J-hook pattern formed in the indexes could also be witnessed in individual stock charts. This allows for optimal entries for short positions. The graphics of candlestick signals and patterns dramatically improve an investor’s trend analysis. Join us tonight for the candlestick forum free training session. Discover which short positions should have the most substantial downside potential. Quick survey – we have been approached by a hedge fund manager to set up a candlestick trading hedge fund, going both long and short. These usually require qualified investors with $250,000 to invest in the fund and will accept $100,000 investments. If there is any interest, please email steve@candlestickforum.com for more details.

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

Good Investing,

Stephen Bigalow