Archives for November 2019

Identifying the uptrend in a continuation process is relatively easy utilizing candlestick signals. Price movements that create patterns that are identified by most investors are confirmed more quickly when evaluating the signals that show strength at pattern breakout levels. This was illustrated in a breakout in the Dow, S&P 500, and the NASDAQ when the next wave was confirmed with candlestick bullish signals. Because candlestick signals are the graphic depiction of human nature and the T-line is a natural support and resistance level of investor sentiment, utilizing the combination provides very high probability trend analysis. The current uptrend remains in progress as it is continuing to trade above the T line. The first analysis of profitable trading is identifying the overall trend of the market indexes. This becomes much more accurate when using the information built into candlestick signals and patterns.

All boats rise in a rising tide! However, identifying the candlestick signals and patterns that produce the highest profit trade results allows candlestick investors to make much greater profits knowing that the overall market trend is continuing in a slow uptrend. The best friend signal, the J-hook pattern, and the frypan bottom are just a few of the candlestick patterns that allow for much greater profitability than merely holding stocks that are moving up slowly in a slow uptrend.GH is showing good strength because of a best friend gap up. DXC provides very strong upside profitability based upon a best friend gap up confirming a frypan bottom breakout. Because candlestick patterns produce to results, a high probability of being in a profitable price move and the results of the price moves are much greater when the patterns produce breakouts, the profitability of an overall positioning of the portfolio is dramatically improved. The percentage of correct trades are dramatically improved based upon the high probability results of candlestick signals. Where most investors have decent portfolio returns during an uptrend, due to a majority of stocks moving positive while a few positions are trading negative, the candlestick investor has the benefit of greatly reducing the number of trades in the portfolio trading lower.

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

Good Investing,

The Candlestick Forum Team

When the market indexes broke out through a resistance level that everybody else could observe, the candlestick investor has the advantage of seeing the bullish signal that was indicating the resistance level was not going to continue to act as resistance. At that point, high probability trend indicators, such as the T-line, continue to confirm that the next wave to the upside was in progress. Although the indexes have had a few days of indecisive trading, profit-taking, the overall trend evaluation is simplified by knowing that as long as the indexes continue to trade above the T-line, the uptrend remains in progress. Having that information allows the candlestick investor to enter trades that have probabilities of creating high profit situations with the underlying factor being there is no major selling pressure in the markets.

The lack of any selling indications provide very profitable trade set ups. Uptrending stocks stimulated by belt hold signals, such as our position in GOSS, dramatically improves the probabilities of not only being in the right direction at the right time but in very strong price moves. Holding steady Eddie positions as illustrated in our recommendations on VSTO and CARB allows for participating in the high profit exuberance at the top of steady price trends. Human nature works the same way time after time. Learning what patterns are created by human nature/investor sentiment puts the candlestick investor in situations where the probabilities are not only extremely strong of being in the right direction at the right time but also establishing positions that will produce excessive profitability.

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

Good Investing,

The Candlestick Forum Team