Archives for November 2019

The markets moving to new high territory was not unexpected. Why? Because simple expectations of candlestick signals and patterns provide a good format for anticipating the continuation of a trend. Over the past few weeks the Dow was forming a frypan bottom pattern. The breakout level of the pattern was corresponding with recent market highs. Knowing what to expect coming out of a frypan bottom made the expectation of more upside easy to evaluate. Once the frypan bottom breakout occurred, utilizing the T line as a trend indicator provided additional confirmation that the Bulls were remaining in control. Knowing what to expect from specific signals and patterns allows the candlestick investor to be much more prepared and ready to move aggressively at levels that other investors might have some hesitancy. Candlestick analysis is not based upon the anticipation of results from fundamental information. Candlestick analysis is merely the graphic depiction of what occurs in investor sentiment time after time based upon the interpretation of results from fundamental analysis. This is a much more accurate assessment of what prices will likely do.

Utilizing candlestick patterns in conjunction with the T line keeps investors in profitable trades, reducing the flaws of emotional investment decision-making. The recommendation of staying with VSTO was based upon the lack of any sell signals and a close below the T line. Witnessing pattern setups allows investors to enter stock or option trades at the appropriate time as illustrated by the J-hook pattern set up in Tesla. Strong candlestick buy signals, such as the best friend signal, produces a high probability trade results as well as much better than average profit results. This can be seen in buy signals that were developed in PAYS, implying a big upside potential. Investor sentiment is the most consistent indicator for evaluating price movements. You do not have to be a sophisticated technical analyst to quickly learn the results of candlestick signals and patterns.

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

Good Investing,

The Candlestick Forum Team

The market indexes all hit new all-time highs, expected based upon the candlestick patterns setting up going into the all-time high breakout levels. The Dow formed a frypan bottom pattern as it moved up toward the breakout levels. The NASDAQ and the S&P 500 performed J-hook patterns which illustrated the wave three of a J-hook pattern would take those indexes out into new high territory. Having the ability to analyze the nature of investor sentiment at specific levels dramatically improves the probabilities of staying in positions through important technical levels. The bullish patterns also developed in the longer-term charts, implying a major new bullish wave was beginning.

When investor sentiment can be analyzed as being consistently bullish, this allows the candlestick investor to take advantage of high profit pattern breakouts. It also provides the opportunities to make big profits in lower-priced stocks that require an overall bullish atmosphere in the general markets. When investor sentiment starts getting bullish across-the-board, news items on individual stock positions produce much bigger profitability when there is little fear of bearish sentiment turning the markets around. The major advantage candlestick charts provide for the candlestick investor is the ability to have a vast majority of portfolio positions moving in the same direction all at one time. Many investors complain that there overall returns are not always great in a bullish market because of some of the positions in the portfolio trading lower even as the market trades higher. Candlestick analysis dramatically reduces having unprofitable positions in the portfolio during specific trends. This is what creates much greater profitability for the candlestick investor.

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

Good Investing,

The Candlestick Forum Team