Archives for July 2019

July 19 Daily Market Comments

Although the indexes are trading at the lower end of their trading range, they are illustrating the Bulls remain in control of the trend with the indexes staying above the T-line. This continues to provide a trading atmosphere where bullish candlestick patterns continue to perform.

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July 18th Market Wrap-Up

Candlestick analysis provides a completely common sense perspective of what price movements will be doing, It does not rely upon projections of which stocks/sectors are going to move bullish or bearish and then waiting to see if those projections are correct. Candlestick analysis is the immediate graphic evaluation of which stocks and sectors are getting bullish or bearish sentiment. This is been illustrated during the current market trend. Although the slow uptrend of the indexes has experienced an oscillating trend movement, specific sectors have clearly shown strong bullish or bearish trend movement. Gold and silver stocks have been exhibiting strong bullish charts, correlating with the strong bullish commodity charts of gold and silver. Crude oil stocks have produced good short trades corresponding with the strong current downtrend of crude oil. Producing consistent profits is not a difficult process when using candlestick analysis. It is merely learning the signals and patterns that are created by reoccurring human nature investment decision-making.

Recognizing the strong chart patterns produces two basic results. First, it puts investment funds in the correct direction of a price move and secondly, the price moves are usually inordinately strong. A slow uptrend in the overall market creates slow uptrending price moves in most individual stocks. Taking advantage of the information built into candlestick patterns allows for producing inordinate profits during that same market price move. Currently numerous frypan bottom breakout’s and J-hook pattern breakouts are creating big profits. Once an investor learns a simple techniques for analyzing the overall market trend, they produce the opportunity to make big gains in candlestick chart patterns that are corresponding with the overall market trend. Simply stated, candlestick analysis puts investment funds into the appropriate positions with a high degree of probability.

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

Good Investing,

The Candlestick Forum Team

 

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July 18th Daily Market Comments

Consolidation? Appears to be. The Dow has currently used the T-line as support. The NASDAQ and the S&P 500 trading lower but currently trading above the open. The transportation index is trading positive after the hard selling of yesterday. The T-line remains the crucial analytical tool. It will be important to see how the indexes close relative to the T-line Today. A pullback is obviously in progress.

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July 17th Daily Market Comments

The analysis of all the major indexes makes for much more clear assessment of the overall market trend. Yesterday, the Dow, the NASDAQ, and the S&P 500 were forming mildly bearish candlestick formations but the transportation index was demonstrating a strong bullish move. This implied the overall market trend was just consolidating. However, the transportation index showing a strong sell indicator, almost a bearish kicker signal, is coinciding with the selling that is occurring in the other indexes.

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July 16th Daily Market Comments

Although the Dow, NASDAQ, and S&P 500 are not showing any dramatic strength so far today, the lack of any major pullback continues to reveal the bullish trend, coming out of a J-hook pattern, is still in progress. The most compelling bullish factor today is the transportation index up huge. This indicates bullish sentiment is still in control of the current trend. Until there is a major sell signal, it has to be assumed the uptrend remains in progress as long as the indexes continue to trade above the T-line, let alone the 3T-line.

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June 15th Market Direction

Candlestick charts not only reveal the immediate price movements based upon investor sentiment but candlestick charts also allow for a much more accurate evaluation of what investor sentiment is going to do in the near future. This is extremely valuable for these market conditions. The market indexes have moved into new high territory, all-time high territory. Will the markets go higher? A large percentage of investors rationalize that if the markets are at all-time highs, it is time to take profits. Candlestick charts reveal a completely different evaluation. A J-hook pattern was formed in the Dow right at the breakout area of new highs. Understanding the results of a J-hook pattern made it very clear that there was buying expectations based upon the J-hook pattern that indicated the recent highs were still going to have more upside. Analyzing investor sentiment based upon candlestick charts allows for logical analysis of a price trend, eliminating the ill rational emotional expectations. If a J-hook pattern reveals more upside through the breakout area, the longer-term charts can then be analyzed with much more accuracy. The Dow has moved sideways for the past 18 months. The current breakout of that resistance level indicates a high probability the next wave may be in progress, producing the potential of another strong upside market on the basis of the first wave prior to the 18 month consolidation.

Having a strong probability analysis of the overall markets allows for aggressively participating in the strong candlestick chart patterns. This allows for taking advantage of pattern breakouts such as frypan bottoms and J-hook patterns. Individual stocks can produce extremely strong profits with pattern breakouts that do not have the dampening a fact of selling indications in the general market. Adding all these elements together allows an investor to put positions together that have high probabilities of producing high profit trades. Remember, this is based upon one simple factor. Human emotions produce the most reliable chart pattern indicators in the world.

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

Good Investing,

The Candlestick Forum Team

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July 15th Daily Market Comments

The lack of any hard selling today indicates some profit-taking but not any major selling pressure. The Dow, breaking out into new high territory on Friday, coming off a J-hook pattern set up, provides better credence that a new investor sentiment was ready to move the indexes further into high territory. It would not be unusual to see today’s trading as a consolidation day.

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July 12th Daily Market Comments

Today’s positive trading in the Dow has some major implications. The magnitude of Today’s bullish trading is less important than the fact that there is bullish trading in new high territory. Simply analyzed, investors new the markets were at all-time highs and they are continuing to buy.

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07/18/2019 Stock Chat with Stephen Bigalow

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 07/18/19

At the end of the webinar Steve offered his “Left/Right Combo Indicator for ThinkOrSwim.”

Here are the product details:

  • The Left/Right Combo Pattern shows when an explosive move is about to happen
  • The pattern uncovers when investor sentiment has changed
  • Now available for the most popular charting package in the world – TOS
  • Easy to install and use – get up and running in 60 seconds

Get more information here.

Good Investing! 

Stephen W. Bigalow

and The Candlestick Forum Team 

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July 11th Market Direction

What does identifying candlestick reversal signals at important technical levels do for an investor? It allows for entering trades at the appropriate confirmation levels, which is usually well I had of other investors. This became clearly evident when analyzing the Dow during this past week of trading. Bullish signals occurring at the T line made much more clear the uptrend was remaining in progress. This instant visual analysis allows the candlestick investor to enter bullish trades more aggressively knowing that the overall trend of the market remains bullish. This results in bigger potential profits but more importantly allows for entering trades during the early part of a new trend movement, which creates the trading environment for closing out losing that didn’t perform with much smaller losses. This greatly enhances the trading strategy of cutting your losses short and let your profits run.

When there is not the fear of any great bearish investor sentiment in the markets, candlestick bullish patterns perform much more profitably. Because prices move based upon investor sentiment versus fundamental reasons, a market atmosphere that does not have the dampening a fact of possible selling produces much bigger gains in candlestick pattern breakouts. Frypan bottom breakout’s have created big gains in our recommendations on STNE and ANGO this week. The bobble breakout has also been very effective, i.e. MDR and YETI. The probability factor of being in the correct trade at the correct time is dramatically enhanced when utilizing the movements of reoccurring human nature. The visual aspects of candlestick analysis clearly illustrate when a bullish pattern is in progress or when a prospective bullish trade does not perform, it allows for closing that position and moving on to a position that has better probabilities.

 

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

Good Investing,

The Candlestick Forum Team

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