Archives for June 2019

What dramatically improves your profitability? Knowing which direction the overall market is moving. That not only allows investors to move immediately when the candlestick charts on individual stocks are corresponding with the overall market direction, but it also provides a logical format for being in profit potential positions when the market does move favorably. Today, the premarket futures indicated a very strong bullish open. Numerous stocks gapped up, further confirming bullish patterns. However, the profitability of getting into bullish confirming trends was modified by having to pay higher prices the trades. With candlestick analysis, numerous position would have already been established based upon visible candlestick patterns, allowing for participating in the profitable gap up as well as further upside. A major advantage of candlestick analysis is the identification of when reversals are just starting. This produces better profitability obviously, for already being in positions as they are moving in the appropriate direction, especially when prices are gapping up.

The major indexes had been creating bullish J-hook patterns. Those patterns alone indicated there was going to be more upside. This produced a much more comfortable trading strategy for buying good bullish individual stock charts knowing that the overall market trend was in a bullish move. The J-hook pattern has been the predominant profitable trade set up. When the major indexes are producing J-hook patterns, it is logical that numerous individual stock charts will also be producing J-hook patterns. The advantage of utilizing candlestick patterns for a trading strategy is that all stocks will usually rise in a rising market. Candlestick pattern breakouts will produce much greater profits because of the excessive price moves expected from human nature as a pattern performs.

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Good Investing,

The Candlestick Forum Team

The graphics of candlestick charts reveal what everybody is watching. The 50 day moving average has acted as a support level once the Dow and S&P 500 broke up through that level. Although the candlestick formations are not revealing a tremendous amount of strength in the current uptrend, they do reveal the lack of any selling pressure. This implies bullish sentiment remains in control. This type of market environment allows for identifying the candlestick signals or patterns that are going to continue to perform with inordinate profits because of the lack of concern of the market selling off. Simply stated, strong candlestick patterns will continue to perform with exorbitant profits when the overall market trend is not showing any change.

The J-hook patterns are obvious profitable set ups due to the market in general creating the potential of J-hook patterns. Specific sectors, such as gold, is producing numerous bullish patterns because gold itself is acting strong. Finding the strongest bullish stock charts can be narrowed down by merely identifying which sector ETFs are producing the strongest signals. Today,LABU formed a kicker signal, breaking the price out of a basing area. This makes the biotech’s strong bullish prospects. Candlestick scans are greatly simplified by merely identifying the sectors that have the biggest upside potential. Then finding the stocks that have the best bullish charts puts all the probabilities in investor’s favor, putting all the stars in alignment.

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

Good Investing,

The Candlestick Forum Team

The graphics of candlestick’s make it much more clear to analyze whether a market is in a profit-taking/consolidation stage versus a full-scale reversal. After a strong bullish move last week, the Dow and the S&P 500 produced a gap up shooting star/Doji. This indicated the possibility of a reversal. Tuesday’s trading produced bearish confirmation. The Dow formed a bearish engulfing signal after the shooting star/Doji. But the graphics of candlestick analysis allow for a much more accurate assessment of whether this was merely profit-taking versus a full-scale reversal. Witnessing the type of trading that occurred as the Dow pulled back to the 50 day moving average made it much more evident that there was the lack of selling pressure. The 50 day moving average acted as a support level as the Dow traded in decisively at that level, a Doji day. Today’s positive trading was more evidence the 50 day moving average was going to act as a support level and produced the probability of a bullish J-hook pattern starting the next uptrend. Profit-taking was more evident in the indexes because the transportation index continue to trade higher. This illustrated there was not a mass selling consensus in the markets.

Knowing that the markets were not reversing after a good uptrend last week allows for participating in the high profit candlestick signals and patterns. The frypan bottom was still very evident in XON, illustrating a breakout of that pattern with a gap up. Simple scanning techniques allows the candlestick investor to pinpoint which sectors are probably going to act the best. As J-hook patterns are being produced in the market indexes, they can also be identified an individual stocks and sectors. Gold prices were showing bullish trading based upon bullish J-hook patterns, allowing for identifying which individual stocks in the gold sector were also producing strong J-hook patterns. Because candlestick signals and patterns are based upon reoccurring investor sentiment, they produce trade set ups that not only produce high probabilities of positive trades but also puts investors in trade set ups that produce inordinately strong profits.