Archives for August 2019

August 23rd Daily Market Comments

What are the candlestick charts revealing about investor sentiment/market direction? Simple, the market does not know which way it wants to go, indecisive trading. In these conditions, reliance on the T-line is important. Utilizing patterns becomes a much more stable trading platform because of the inherent investor sentiment that builds up to create a pattern. Did we know there was going to be a buyout in CBLK? No, but the scoop pattern was a good indication bullish sentiment was coming into the price move for some reason.

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August 22nd Market Wrap-Up

Are you like most investors, that seem to get whipsawed out of a positions when things do not look good? Fortunately, candlestick analysis greatly reduces emotional decision making. Today, the Dow traded higher on the open. But the fear factor of the inverted yield curve, short-term bonds producing a higher yield than longer-term bonds, promotes the possibility of a recession. After trading positive in early trading, the indexes started trading lower. This usually knocks out the week traders. Because candlestick analysis utilizes visual indicators, the T line provides a very significant trend indication. Utilizing the simple T line rule, the uptrend remains in progress until witnessing a sell signal and a close below the T line keeps the candlestick investor from panic selling at the wrong times. Note today’s trading in the Dow bounced off the T line and started to move back up. The reason this is significant is that the T line is used by an in an orderly small percentage of all investors, so small that it should be categorized as nobody uses the T line. That means it is not be in watched as a potential target. When prices support and resist as often as they do at the T line, it provides additional confirmation of the graphics of investor sentiment, candlestick signals, with the T line’s natural support and resistance level of human nature.

Utilizing the T line as a trend indicator allows the candlestick investor to keep from getting scared out of positions. The simple trading rule is that as long as there is not a candlestick reversal signal and a close below the T line, and uptrend remains in progress. Add the factor that the market indexes have produced strong bullish signals over the past week of trading allows for waiting to the end of the day to make any major decisions about closing out positions. Candlestick patterns are the product of human nature reacting the same way time after time. As illustrated in our recommendation on CBLK, identifying the potential scoop pattern, created by a MorningStar signal right on the T line, dramatically increases the probabilities that confirmation of the MorningStar signal will produce the expected scoop pattern breakout. This analysis is based upon centuries of trend move observations. Having the ability to identify high probability trades set ups allows the candlestick investor to constantly have positions oriented toward the correct direction as well as establishing option trades that have high probability/high profit potential.

 

Chat session tonight at 8 PM ET with Guest Speaker Troy Epperson. Click here to register. 

Good Investing,

The Candlestick Forum Team

 

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August 22nd Daily Market Comments

Today’s lower trading, after opening positive and trading positive, continues to keep the market indexes in the sideways trend of the market. This congestion area that started four weeks ago continues to reveal the lack of decisive trading sentiment.

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August 21st Daily Market Comments

Today’s positive trading not only confirms the market indexes are staying above the T-line but the fact that Today’s open in the indexes was above the open of yesterday’s trading is a very strong bullish signal based upon the formation of a bullish trend kicker. This implies the strength of the uptrend is continuing with the expectation of more upside.

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August 20th Daily Market Comments

Today’s consolidation has pulled back and use the T-line as a support level in the Dow, the 3T-line in the NASDAQ and S&P 500. It will be important to see the indexes remain above the T-line. Today’s recommendations are showing maintaining strength, not necessarily to be bought yet, but indicating that when the consolidation in the markets are over, these positions should act very well. As long as the indexes currently stay above the T-line, anticipate the uptrend remaining in progress.

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August 19th Market Direction

The visual results of candlestick charts produce beneficial trade executions. This is due to to the expectation of what a price move should do with a high degree of probability after the appearance of a candlestick signal. The indexes produced MorningStar signals on Friday, positive trading after a Doji in the oversold areas. The Dow produce greater expectations when the MorningStar signal occurred right off the 200 day moving average. Knowing what to expect, based upon a candlestick reversal signal and its location in the oversold area, allows candlestick investors to move aggressively when the signals confirm. This produces the ability to move quickly based upon knowing what to expect as far as confirmation of a reversal signal. Witnessing the premarket futures showing a positive open today after the MorningStar signals in the indexes on Friday had the candlestick investor prepared to buy individual stock positions that were showing strong bullish confirmation immediately on the open.

Expecting confirmation of the indexes allows for taking advantage of chart patterns that are going to be confirming based upon the lack of any major change in the overall market indexes. Today ,NVDA gapped up on the open. Most investors are usually hesitant about buying into excessive price moves. However, knowing that a positive open would have created a bullish flutter kicker allows for very profitable trades by moving immediately on the confirmation of that signal set up. The same high probability analysis was applied to MU. When it opened positive, it not only was confirming the MorningStar signal off the T line, it was also demonstrating a J-hook pattern set up potential. This is what is considered 2 plus 2 analysis, witnessing what the individual signals are doing that are going to confirm a high profit pattern. This is not rocket science, this is merely identifying the same patterns that human nature provides century after century. Candlestick analysis is merely learning to identify what same human nature patterns will be forming. Because human nature works the same way time after time, candlestick analysis constantly puts investors in high probability trades set ups.

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

Good Investing,

The Candlestick Forum Team

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08/22/2019 Stock Chat with Troy Epperson

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 08/22/19

At the end of the training workshop Troy offered two AMAZING tools that took him from almost losing it all, to trading futures like the “Big-Boys” again.

To avoid another setback, and GET ACCESS to these same profit-pulling tools FOR FREE!
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August 19th Daily Market Comments

Why should you not listen to the news and making investment decisions? Last week Main Street media could not talk about going into a recession enough. One tweet has obviously dramatically changed any bearish sentiment on Wall Street. Friday’s bullish trading revealed a Doji gap up at the 200 day moving average in the Dow.

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August 16th Daily Market Comments

Today’s positive trading appears to be confirming the Doji in the Dow right at the 200 day moving average area. Bullish trades can be slowly established but today’s final criteria requires the market indexes to close near the high end of their trading range. The hesitancy to buy long positions just yet is based upon the stochastics not yet showing oversold conditions. Any long positions added today require strength going into the close, trading near their higher end of the trading range.

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August 15th Market Wrap-Up

The market had remain in a very indecisive mode due mainly to tweets and interest rate expectations. But fortunately for candlestick investors there is still very simple trend criteria that allow to make a trend assessment. As witnessed in the Dow, after the bearish left right combo at the T-line, the market started showing support with bullish candlestick signals at the 200 day moving average. A reversal or a bounce? That was easily identified when the indexes could not reach the T-line. This provided the expectation that the Bulls had not yet taken control. As seen over the past seven trading days, there was no continuity in a trend, daily oscillations. But the most revealing criteria remained that the markets could not show a bullish reversal signal and a close above the T line. Although the downtrend seems to be prevalent, the formation of of a bearish J-hook pattern, the Dow is currently trading at the 200 day moving average, a possible support level. It will be important to see how they open the markets tomorrow, revealing the 200 day moving average is going to act as support on a positive open or whether a bearish Doji sandwich demonstrates more downside on a lower open. The advantage of candlestick analysis is knowing what type of signals and patterns will be formed based upon the results of individual signals.

With the market moving dramatically up one day and down the next day, it is obviously very difficult to trade. That provides two obvious trading strategies. First, if the market and individual stock price movement is not showing any consistent direction, there are times when it is much better to sit in cash until a direction can be identified. Or secondly, any positions should have very relevant pattern confirmations to offset the effect of outside influences. Pattern breakouts or very powerful candlestick signals as revealed in TSLA and TLRY provide higher probability price moves that will overcome an oscillating general market.TLRY short recommendation was based upon a very strong bearish kicker signal. TSLA short recommendation was based upon a wedge breakout to the downside. The information built into candlestick signals allow the candlestick investor to take advantage of the most powerful trend movements.

 

 

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

Good Investing,

The Candlestick Forum Team

 

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