Archives for June 2020

The major indexes formed bullish Harami’s Today, a very strong candlestick signal indicating the selling has stopped. However, all the indexes are still trading below the T-line. This allows for the candlestick investor to be prepared for the next trend movement. A failure of the bullish Harami, a lower open tomorrow, would continue to make the T line downtrend the viable analysis. A positive open tomorrow, confirming the bullish Harami, would add credence to the Dow supporting at the 50-day moving average and the NASDAQ supporting at the up-trending channel. Knowing what to expect, based upon how the markets open, allows for increasing or closing long and short positions in the portfolio.

Currently there are sectors that are producing good strong steady profits. Gold stocks, for example, are gaining strength because gold prices continue to slowly move positive. Having the ability to analyze the overall market trend, analyzing individual sectors, and then able to analyze which stocks are producing the strongest signals in that sector allows the candlestick investor to dramatically improve the probabilities of being in the correct trade at the correct time, putting all the stars in alignment. Knowing which candlestick signals and patterns produce the strongest results also increases the probabilities of being in profitable trades at the optimal entry points.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

Candlestick signals are created as a graphic depiction of what is occurring in investor sentiment. Candlestick patterns are the accumulation of investor sentiment illustrated in a recognized pattern that is reoccurring time after time. A major benefit of candlestick patterns is that it keeps an investor from getting whipsawed during oscillating markets. The frypan bottom patterns have produced inordinately strong and consistent profits. As witnessed, numerous fry pan bottom patterns continue to trade higher or flat even in a market that had sold off over 700 points. This is because investor sentiment was building up for other reasons in purchasing those positions, which was not concerned about the general market direction.

The Best Friend signal illustrates a new and powerful interest in a price move. This is illustrated from the Best Friend signal recommendation last week in ALT. Today it continued its uptrend based upon news that somebody had accumulated 20% of their stock. After a strong price move into the close today, the announcement has caused more buying in after-hours, up another 15 to 20%. This is not to illustrate great stock-picking ability, this is to demonstrate that the signals will illustrate when something very bullish is occurring in a price move. We may not know what is causing it, all we can analyze with candlestick analysis is that there is strong bullish activity. These are the positions we want to be participating in.

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

Good investing,

The Candlestick Forum team.