Archives for March 2020

What do the powerful candlestick signals represent? They are the actual buying and selling decisions, not the speculation, not opinions, actual buy and sell decisions. Why is this important? It allows the candlestick investor to see exactly what investor sentiment is doing, cutting through all the “expert” opinions heard on the financial news stations, financial newsletters, and email promotions. Last week the market indexes produced McMuffin patterns. A McMuffin pattern is a MorningStar signal, one of the 12 major candlestick signals, which produces high probabilities of a trend reversal. The MorningStar signal is then followed by a bullish Doji sandwich. The expected results of a Doji sandwich is more upside. When you combine the two signals, a morning sandwich/McMuffin, it produces extremely high probabilities an uptrend is going to remain in progress. Add the factor of the trend remaining above the T line enhances those probabilities. Witnessing the big stocks, AMZN, NVDA, AAPL, NFLX all producing good bullish chart patterns is additional evidence that bullish sentiment has now come back into the markets.

Why is it important to be able to accurately analyze the overall market trend? It allowed for candlestick investors to be participating in the downtrend when the first sell signals appeared in the market trends close below the T line. The McMuffin signal components illustrated when the downtrend had reversed. This allows for simple scanning techniques to find the strongest bullish sectors, then scanning for the strongest individual stock charts in those sectors. This puts the stars in alignment, the probabilities put greatly in your favor. The REIT sector is showing across-the-board buy signals. Numerous specialty medical supply companies are obviously working well in these market conditions. Knowing which sectors are acting the strongest allows the candlestick investor to pinpoint the best trade set ups.

CMD and DNLI our recent recommendations that illustrated good strong chart patterns based upon the current virus situation. You do not have to know formulas, you do not need technical analysis skills! You merely need to visually recognize and understand what candlestick reversal signals are illustrating about human nature. Do not complicate investing. Candlestick charts keep it simple.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

The McMuffin pattern! Not a very sophisticated sounding pattern but it is extremely reliable. It is formed by the Morning Star signal, one of the 12 major signals, followed by a Doji sandwich. In short, a morning sandwich, the McMuffin. These are the type of visual analytics that allow candlestick investors to start adding to long positions with great confidence. The MorningStar signal provides the expectation that a reversal is occurring. The Doji sandwich indicates more upside. The combination of a MorningStar signal followed by a Doji sandwich is a double confirmation that the bulls have taken control. This is provided visual recognition of high profit trade set ups. The important factor is being able to identify when there is a change of investor sentiment. This allows for entering trades that have upside potential well before everybody else is starting to move in. Boeing for example, trading it $99.00 four days ago is now trading at $180. There are numerous stocks that have produced very strong reversal signals that have the potential of doubling in a very short time frame.

Being able to identify the strongest top ranked candlestick signals and patterns allows an investor to make hay while the sun shines. You obviously want to be able to find the stocks that are going to move the strongest when a market is moving in the correct direction. Candlestick reversal signals allow you to identify which price moves are going to be much stronger than the normal price moves of most stocks. Adding confirmation indicators such as the T line dramatically improves the probabilities that an uptrend is in progress. This allows for identifying the target areas that will produce the biggest returns during the current trend. Utilizing the high profit candlestick patterns also produces high probability trade results based upon the exact entry points. There are numerous stock charts revealing top ranked reversal signals that have the capability of producing very strong profits. Why? Because investor sentiment can be clearly identified as to the strength of a price move through simple visual identification of the strongest reversal signals.

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

Good investing,

The Candlestick Forum team.

What is affecting the market trend? Politics! That was evident in the price movements of the markets today when there was the prospects of a relief bill passing and then the realization the relief bill was not passing. This becomes relevant information for anticipating the market trend is predicated on what bills can be passed. That implies the market trend has gotten to a level where investor sentiment is looking for something to help reverse the downtrend. What will be the best stock price reversals when the market reverses? That is currently being illustrated by candlestick reversal signals already performing. Last week ZM was identified as a potential J-hook pattern. Today, there were numerous Doji sandwich breakouts through the T line. What this illustrates is that buying has started back in this market. The candlestick investor gains a huge advantage by being able to identify which stock/sectors are starting to show buy signals. This implies that those stock/sectors will probably act the strongest when the market in general starts reversing and showing strength. The more you learn what is incorporated into candlestick signals, the more you become convinced that price movements are based upon investor sentiment. Even if you have a relatively successful trading strategy/system that you are currently using, when you add candlestick analysis charts to your analysis, you dramatically improve the visualization of successful price moves.

Do not get discouraged. If you are relatively new at candlestick analysis, the lack of any good trade set ups from the candlestick charts is very informative. There are not any good candlestick trade set ups occurring in this market. 98% of the time the candlestick charts will reveal a number of good bullish charts or berries charts no matter which way the market is moving. 2% of the time the markets will illustrate not to be in the market. We are in that 2% time frame. Be patient, the rubber band is stretching. There will be strong bullish trades very soon. Chat session tonight at 8 PM ET. Mark your calendars, April 4 and 5 will be a two day comprehensive training, the Triple T training. This is identifying and understanding the major candlestick signals and patterns with enhancing probabilities of the T line. Take advantage of this information, it will improve your investment perspectives for the rest of your life.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.