Archives for June 2019

The nature of each candlestick signal/formation provides a much more comprehensive insight into the strength of the Bulls or the Bears. Witnessing a signal at important technical level, such as the Dow forming a Doji day right on the T line provides a visual analysis that will indicate the direction of the trend based upon the Doji rule, the trend will usually move in the direction of how they open after a Doji. A positive open tomorrow would reveal the T line acting as a support for the Dow. The NASDAQ and the S&P 500 are also showing potential reversal signals at the T line. The NASDAQ confirmed a homing pigeon signal, a Harami that has both candles the same color, by trading positive today and backup above the T line. Although today’s trading did not illustrate a major reversal in the markets, at least the candlestick formations indicated there was not currently any significant selling pressure. This was further evidenced by the number of bullish chart patterns versus the number of bearish chart patterns in today’s trading.

The strong patterns allow for not only identifying the direction of the next potential price move in individual stock charts, but it also provides the opportunity to participate in much stronger price moves than merely uptrending stock prices during an uptrending market. The J-hook pattern, more specifically the bobble breakout patterns, are providing high probability/high profit trade set ups. A candlestick investor gains excessive visual analysis information based upon the patterns that produce expected results. Identifying a pattern breakout at the T line level enhances the probabilities of being in a strong profitable trade. The T line, working in conjunction with candlestick signals and patterns, dramatically improve the probabilities of entering and maintaining high profit positions. Candlestick trainings direct investors to trade set ups that produce high profit results based upon the reoccurring nature of investor sentiment.

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

Good Investing,

The Candlestick Forum Team

The visual graphics of candlestick analysis allow investors to much more accurately assess where markets may be continuing an uptrend or getting ready to top out. This is evident in the Dow with the indecisive candlestick signals, a shooting star signal and a Doji occurring in the overbought area. Additionally, it merely takes visual analysis to recognize this indecisive trading, potentially a reversal in the trend, is occurring at the exact same levels the markets topped out about a month and a half ago. The nature of each candlestick signal allows for the analysis of what type of investor sentiment is occurring at observable potential reversal areas. Is the market ready to top out? The alert becomes much more apparent when recognizing where indecisive trading is occurring.

Having the visual ability to analyze whether the market is still capable of additional uptrend or if it’s about ready to pull back as a reversal or a profit-taking area, allows for the appropriate trade positioning in the portfolio. Any signs of weakness in the markets in this area creates a trading strategy that dramatically improves profit probabilities. If the market appears to be ready to back off, any new positions would be more oriented toward shorting. It would also create the analyzing of existing long positions with much more scrutiny, be in ready to take profits on signs of reversal signals. When these market conditions exist, the candlestick investor has a great advantage of being able to scan for the most profitable trades, whether bullish or bearish. Keep in mind, prices do not move based upon fundamentals, prices move based upon the perception of fundamentals. This is clearly identified using candlestick analysis.

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

Good Investing,

The Candlestick Forum Team