and The Candlestick Forum
In order to download click on the link below, once on the video page you will right click on the video then hit “download” to save to your files.
Stock Chat – Thursday 05/30/19
At the end of the webinar Barry offered his “Rubber Band Trade Setup” course for free to everyone!
The trend/nature of the markets are much more easily analyzed when knowing the simple Doji rule and being able to analyze what the character of investor sentiment is revealing on a day to day basis. The current downtrend of the market is pretty well been confirmed due to the fact the market indexes have never been able to get back up above the T-line. There were prospects of a reversal with the NASDAQ and the S&P 500, being in the oversold condition, formed indecisive/Doji type days right off the 200 day moving average. This would have made for a logical bullish reversal based upon identifying bullish confirmation after the indecisive candlestick signals that just touched the 200 day moving average. However, Today’s positive trading did not illustrate a strong bullish reversal. Another day of indecisive trading. The lack of any bullish candle indicated there was not any major change of investor sentiment. It still has to be assumed that as long as the indexes continue to trade below the T-line, the downtrend remains in progress. A lower open tomorrow would create a bearish Doji sandwich in the Dow, indicating a bearish J-hook pattern was in progress. This would lead to wave three to the downside.
In this condition in the markets produces a stage where is just remaining short is the best strategy. Adding new short positions with the markets in the oversold condition produce a higher risk trade. Adding long positions without any major reversal signals doesn’t have a great profit potential based upon not seeing the markets in general stopping their downtrend. Any long positions has needed the lack of candlestick sell signals and closes below the T-line. This is where candlestick patterns, such as frypan bottoms and J-hook patterns produce a viable profit in bullish trades. But the big profit moves are going to be going with the flow, short positions in a downtrend. The simple scanning techniques of candlestick analysis allow investors to find the best bullish or bearish trades in any market conditions in less than 20 minutes each afternoon. Knowing which direction the general market is moving and being able to identify the individual stock chart patterns that are going to produce the best profits dramatically decreases an investors emotions and their trading.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
The Candlestick Forum Team
Although the market indexes opened positive Today, currently they are not showing any follow-through. This is creating indecisive candles, indicating there is no dramatic reversal of the trend. Yesterday, the NASDAQ and the S&P 500 showed a possible bounce off the 200 day moving average, making for the possibility of a reversal/bounce from that level based upon seeing good bullish strength today. Currently, the markets are not demonstrating any major strength. The analysis of each individual stock chart should be the top criteria until there is a definite reversal in the market indexes.
The Mueller report Today did not help the market that was already continuing to move in its current direction. The 200 day moving average still appears to be the potential target for the NASDAQ and the S&P 500. The Dow gapped down through the support levels creating the prospects of a bearish J-hook wave three to the downside. Any short positions added at these levels should be done with a quick trade prospect if the markets start bouncing from here. If already predominantly short, the best strategy at this point is to just sit and be prepared to take profits upon the first signs of a bullish signal.
Although the markets opened positive Today, the current trading reveals the downtrend probabilities are still intact, with the indexes continuing to trade below the T-line. The transportation index indicates the most bearish trend movement. The trading strategy is very simple. Stay predominantly short until the appearance of candlestick buy signals and a close backup above the T-line. There are a couple of bullish kicker signals that warrant trading long but the overall bias of the portfolio should still be to the short side.
In order to download click on the link below, once on the video page you will right click on the video then hit “download” to save to your files.
Stock Chat – Thursday 05/23/19
Learning how to utilize candlestick signals effectively is relatively easy. It’s all visual. When did the market indexes start showing bearish sentiment? That can be easily detected by going back and finding the strong candlestick sell signal and a close below the T line. How do you assess what the policies and arguments of Washington DC is going to affect the market trend? You can’t! But candlestick charts reveal how the overall investor sentiment is reacting to different tweets or soundbites coming out of Washington. The major benefit of candlestick analysis is it immediately illustrates what is occurring in the investment sentiment’s of the market trends and/or specific stocks and sectors. The bearish left/right combo in the Dow chart and the close below the T line illustrated a strong change of investor sentiment of the previous uptrend. Candlestick signals have been identified and utilized by Japanese Rice traders over the past few hundred years to show exactly when a trend is starting or ending. The probabilities of analyzing trend movement successfully are dramatically improved knowing how investor sentiment is graphically depicted. Having short positions in the portfolio’s over the past four weeks of trading produced great profits by merely being in the correct direction of the markets trend and stock trends based upon a powerful T-line rule. A candlestick reversal signal and a close below the T-line dramatically increases the probabilities of a downtrend until witnessing a candlestick buy signal and a close above the T-line. This is based upon excessive analysis for many centuries demonstrating the effects of investor sentiment. The short positions have produced very strong profits.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
The Candlestick Forum Team
The indecisive nature of the market is still being demonstrated in today’s market trading. The major indexes, trading slightly lower, are trading above where they opened or trading as Doji’s so far Today.
The markets still can’t make up their minds, illustrated by the trading above the T-line and back below the T-line, then backup above. This clearly indicates there is no major consensus by the Bulls or the Bears. Both long and short positions are still trading profitably off candlestick signals. Until there is a definite signal confirmed by a close above or below the T-line, have both long and short positions in the portfolio. Obviously, this is a very schizophrenic market to trade.
May 31st Daily Market Comments
Why is the T-line so effective? Candlestick signals and patterns create graphic depictions of what is occurring in investor sentiment. The T-line produces a high probability support and resistance level of overall investor sentiment, a confirmation of the candlestick signals.