Archives for June 2020

Numerous candlestick charts are producing high probability/high-profit trade results. This is based upon the convergence of buy signals and buy patterns at the optimal breakout points. Currently, the market indexes have been in steady up-trends based upon the indexes not able to close below the T line. The Dow went from a Piercing signal off the 50-day moving average to the next likely resistance level, the 200 day moving average. That becomes an obvious level to see whether investors were ready to take profits. Today’s trading made that analysis very simple, it formed a Doji. The Doji rule allows for accurate assessment of whether the trend will continue or whether more profit-taking will occur now that the 200-day moving average has been touched. A lower open tomorrow would imply profit-taking at the 200 moving average is now occurring.

Although the markets backed off today, specific sectors produced some very strong bullish patterns. The airline sector has been producing good profits based upon a combination of fry pan bottom and J Hook pattern breakouts. Recognizing the pattern breakout levels allow candlestick investors to enter high probability profit trades at the ultimate entry points. These market conditions are allowing for simple candlestick scanning techniques to identify strong bullish charts as well as strong bearish charts. Be prepared for some profit-taking in the market indexes, making having both long and short positions in the portfolio for the next few trading days the viable strategy. Join us this weekend June 6, for a spotlight training on how to recognize the set ups for the explosive breakout moves.www.stephenbigalow.com/Identifying-Breakouts

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

Good investing,

The Candlestick Forum team.

The definition of a bull market is an uptrending market in spite of massive negative news. The indexes continue their uptrend in the trend channel with both the Dow and the NASDAQ continuing to trade above the T-line. Today’s positive trading occurring even though the news broadcasts filmed dozens of cities being burnt. Candlestick charts reveal what is actually occurring in investor sentiment versus what each of us may think should be occurring in the market trend. The slow uptrend of the markets indicates the lack of any great exuberance, merely steady buying. These types of market conditions allow for the candlestick patterns to work excessively well, not having investor sentiment concerned about any selling pressures. The J Hook pattern has produced a very good profits. Patterns have two major advantages. They produce extremely high probabilities of a direction of a price move and they also provide price moves much stronger than merely up trending stocks during an uptrend. Knowing the results of candlestick signals and patterns give you a competitive edge.

ZM and CRWD produced very strong profits, a scoop pattern and a J-hook pattern. BYND is setting up for a scoop pattern breakout if it opens positive tomorrow. There have been numerous J-hook patterns setting up and producing profits ,FVRR, FSLY, DOCU, OKTA , and many more. Knowing which patterns will produce the biggest profits during an uptrend allows investors to maximize profitability when the markets are trading positive, essentially optimizing the term making hay while the sun shines. Candlestick signals and patterns dramatically improve the probabilities of making profitable trades and participating in trades that will produce large profits.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.