Archives for October 2019

October 18th Daily Market Comments

Today’s consolidation, not unexpected, was made more evident with the NASDAQ opening yesterday right at the resistance level and selling off, creating a small hanging man signal. The projection of merely consolidation today is based upon the indecisive signals created over the past couple of trading days but the stochastics are still not quite into the overbought area.

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October 17th Market Wrap-Up

The continued uptrend of the markets are still a result of the bullish flutter kicker of last week. The strength of that signal allows the candlestick investor to anticipate that the top of the wedge formation is still the likely target. That allows for the expectation of additional upside for at least the next day or two. The candlestick investor also has the advantage of being able to recognize what is occurring in investor sentiment once a major resistance level is hit. Indecisive trading at that level, such as Doji’s or shooting stars, indicate a much higher probability that it is time to take profits at those levels. A breakthrough of the resistance level with a good solid candle indicates the lack of any concern for that resistance level anymore, implying more upside. Because each candlestick signal and pattern produce expected results, a trend is much more easily analyzed knowing what the nature of each signal or pattern represents.

Utilizing the information built into a pattern produces much higher probabilities of participating in a breakout price move at the appropriate time. As illustrated in our recommendation on WLH, the gap up through the resistance level confirmed the frypan bottom breakout. Being able to visually recognize today’s trading was an indecisive/Doji type day produces an extremely high probability profitable trade entry based upon a positive open tomorrow. A positive open, utilizing the Doji rule, would produce a high probability of more upside. This would create a bullish Doji sandwich breakout. When analyzing where the breakout should occur and then seeing a strong candlestick signal that would confirm a bullish breakout, the candlestick investor will not only have high probabilities of a correct trade but the additional benefit of an extremely strong price move. Combining candlestick signals with candlestick patterns produces the opportunity to participate in huge price movements based upon the results of investor sentiment.

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October 17th Daily Market Comments

Today’s positive trading is being created with a slow steady buying pressure, demonstrating more calculated buying decisions. This is allowing for numerous breakout patterns to perform i.e. WLK. The upper wedge resistance level for the indexes continues to be the likely target. Stay predominantly long with the expectation of another day or two to the upside approaching the upper resistance level. The NASDAQ actually opened at the resistance level and has backed off. It will be important to see if the NASDAQ stay relatively close to the resistance level while the other indexes are catching up. Always be careful of tweets. Put safety stop’s at levels that prices should not be trading back down through.

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October 16th Daily Market Comments

Although the market indexes are trading slightly lower Today, note that they are trading above where they opened. This implies merely profit-taking early in the day with the expectation that the uptrend will continue later in the day. An additional bullish indicator is witnessing a large number of stocks still trading positive. The projection remains the same, look for the indexes to come up and test the top of the wedge channel.

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October 15th Daily Market Comments

The bullish flutter kicker signal of last week is still in effect, trying to push the indexes backup toward the top of the wedge channel. Numerous signals, such as the double Doji set up, is confirming good breakout patterns, i.e.NVDA. Continue to stay long with the ultimate target being the top of the wedge channel/resistance level. Making hay while the sun shines is dramatically enhanced when witnessing strong candlestick signals at a bottom of a channel, with the likely target the top of the channel.

 

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October 14th Market Direction

Last week, the bullish flutter kicker signal produced very strong evidence the Bulls were stepping back in with great force. This indicated the sideways wedge formation in the indexes was still intact. That evaluation provides a strong expectation for establishing or maintaining positions in the portfolio. Investor sentiment was revealing a lack of major bullish pressure as well as a lack of a major bearish pressure in the overall market trend. This makes the analysis of each individual stock chart the most predominant factor. The lack of any major trend movement reduces the prospects that uptrending bullish candlestick patterns will be reversed due to any strong market selling. Short positions have the same results, downtrending stock positions can be maintained with the lack of any significant bullish pressure in the markets. Simple candlestick scanning techniques reveal shipping stocks as a strong bullish sector and the weed stocks are still downtrending, good short positions.

When the market indexes are in a sideways mode, the candlestick investor has a great advantage of being able to analyze which stock charts are producing pattern setups for identifying the potential of big breakout price moves. A candlestick pattern, moving up to a observable resistance level, produces an extremely high probability of a correct trade result. But more so, this set up has the prospects of producing excessive profit movements. Because human nature works the same way time after time, it produces a great advantage for the candlestick investor that understands why eight pattern is being created. A frypan bottom pattern coming up to a resistance level, as illustrated in the NVDA chart, produces an expectation of a strong breakout if that resistance level is breached. Numerous candlestick patterns, in conjunction with a candlestick signal at a breakout level dramatically improves the probabilities of being in a very strong price move.

 

 

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October 14th Daily Market Comments

The markets appear to be in a wait and see mode today. Wait and see what is not exactly clear. The lack of any market move Today continues to make the steady Eddie positions continue to act well i.e. HOV, STNG, ARWR, ENPH, TSLA. Shipping stocks remain strong.
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October 11th Daily Market Comments

The bullish flutter kicker’s in yesterday’s trading brought the indexes up through resistance levels. The strength of the kicker signal/flutter kicker signal indicates a very strong reversal. Today’s positive trading in the markets was expected based upon the flutter kicker signals. However, there was also the warning that any negative tweet’s about China trade talks could still be a strong factor but so far so good.

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October 10th Market Wrap Up

Today’s positive trading was well anticipated. The setup for a bullish flutter kicker was established in Wednesdays trading. The bullish flutter kicker signal is one of your strongest candlestick reversal signals. It is created when the trading gaps up to the top of the previous day’s open, which had been a bearish candle, and forms a Doji. The gap up itself was a sign of a potential reversal. Once the Doji was formed, a bullish flutter kicker signal is easily recognized as well as anticipated. The Doji rule – prices will usually move in the direction of how they open after a Doji, makes entering profitable trades an immediate process. The bullish flutter kicker signal as anticipated as soon as there is a positive open after the Doji. Knowing this signal is being created allows for establishing profitable positions upon the open.

Anticipating the market indexes are going to trade positive allows a candlestick investor to immediately establish bullish positions in individual stock charts that are also creating bullish flutter kicker signals. NVDA and AAPL had bullish flutter kicker set ups. This is where the 2+2 analysis greatly improves the probabilities of being in a profitable trade. A bullish flutter kicker signal in NVDA provided clear evidence the frypan bottom pattern was going to stay above the T-line, implying more upside.AAPL produce the same scenario, a frypan bottom pattern that would be confirmed with a positive open after yesterday’s Doji, illustrating a breakout of the observable resistance level. Candlestick charts allow for the analysis of a build up of investor sentiment, creating a candlestick pattern. Identifying a strong bullish candlestick signal at a breakout level dramatically improves being in the appropriate trade at the appropriate time. This is merely taking advantage of the consistent patterns that are created by human nature time after time.

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Good Investing,

The Candlestick Forum Team

 

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October 10th Daily Market Comments

Yesterday the market indexes gapped up at the previous day’s open of bearish candles. At the end of the day, the indexes closed where they opened, creating a Doji. This was a high probability set up for producing a bullish flutter kicker signal based upon positive trading today. As witnessed, today is trading bullish creating the bullish flutter kicker signal. This is one of your strongest reversal signals, provided the indexes close near the top end of their trading range. Not only would that create a strong reversal, but it would also have the indexes closing above the >T-line.

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