Today’s market candlestick signals revealed a potential reversal in the indexes. The Dow produced a hanging man signal followed by a small shooting star candlestick signal today. This produces a much more accurate trend analysis. A lower open tomorrow would indicate a pullback at least to test the T-line. The NASDAQ formed a bearish Doji/Harami. This also provides a good trend analysis indicator. A lower open would suggest a pullback to the 50 day moving average/T-line level.

Having this visual knowledge allows the candlestick investor to move quickly and closing out long positions that are starting to show reversal signal confirmations. However, there still remains very strong bullish signals and patterns. The kicker candlestick signal continues to produce good profits even when the overall market starts getting bearish. As illustrated in the MRNA chart, the kicker signal started the uptrend. Maintaining the position is simple, as long as it does not close below the T line. Using the T line as a trend indicator in conjunction with candlestick signals greatly reduces emotional decisions. You gain a much better analytical perspective of price moves when using candlestick signals/patterns in conjunction with the T line. Join us Saturday, November 19 for a full day training on visually recognizing the high probability trades set ups using the T line as your major confirming indicator. This training should give you a new perspective on effective trading strategies. Click here for more information.

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow

The strongest candlestick signal is the kicker signal. The strongest candlestick signal is clearly identified by a gap up in price, above the previous day’s open and then continuing to trade further in that direction. All the indexes exhibited bullish kicker signals today. This was the result of inflation indicators modifying. Knowing how a kicker signal is formed, gapping up above the previous day’s open, immediately alerts for the covering of short positions. Simple candlestick logic indicates if a stock price is in a downtrend and the next day they opened and at or above the previous day’s open, there has been a dramatic change in investor sentiment. This not only activates closing out short positions but also instigates going long. As illustrated in today’s trading, lower-than-expected inflation numbers provided strong bullish sentiment. Does this mean inflation is disappearing? As an investor, that does not matter! What matters is the decisions everybody else is making as far as buying or selling positions. Although the kicker signal demonstrates a very strong bullish sentiment, expect some profit-taking to occur early on Friday after the big percent move the markets created today. An additional bullish confirmation is the T line. Join us Saturday, November 19 for a full day training on how the T line, acting as a natural support and resistance level of human nature, dramatically improves the probabilities of being in correct trades based upon the information built into candlestick signals.

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

Good investing,

Stephen Bigalow

The power of candlestick patterns demonstrate the nature of a price move. The power of candlestick patterns is currently illustrating the nature of the current market conditions. There are strong bullish charts as well as strong bearish charts. The Dow is producing a bobble breakout, a strong bullish candlestick pattern. That by itself demonstrates the probability of a strong market trend. Although the NASDAQ is trading below the T line, it is currently producing a bullish move. The S&P 500 closed above the T-line and the 50-day moving average. Bullish trading in the indexes would confirm the bullish setups of today. What sectors will act the strongest based on Republican control of the house and the Senate? This question was asked in our chat room today. Candlestick analysis makes that answer very simple. We may not have the insights to predict which sectors to be ready to buy, but the results of candlestick charts after the election will clearly indicate what the results of the election has produced as the sectors that are going to benefit the best. We do not have to analyze what to be ready for before the election. Candlestick charts will reveal what the big money has analyzed as being the best sectors. The power of candlestick patterns make it very evident of where money is moving to.

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow