Archives for July 2020

The sideways mode of the market is very beneficial to the candlestick investor. It allows for scanning for either strong bullish or bearish individual stock chart patterns, knowing the price movement will not be affected by an overall market trend. Currently in this slow up trending market, there has been very strong pattern breakouts. Fry pan bottom patterns have produced some very big profits. This can be seen in the homebuilders stocks,TOL, PHM. Bullish flutter kicker signals have created strong profit trades. When the market is not moving with great aggressiveness in one direction or the other, the big profit trades are going to be the results of candlestick pattern breakouts. This is the result of identifying where human nature starts producing big price moves.

The strength of the earnings in the big traders, AMZN, AAPL, FB, GOOGL should produce more bullish confidence in the markets tomorrow. A positive open in the market indexes tomorrow would produce more evidence the NASDAQ and the S&P 500 are going to continue to trade above the T line. Positive trading in the Dow could bring it back up above the T line. Currently, with a couple of the indexes trading above the T line in the Dow trading below the T line, the market trend analysis is still evaluated as a sideways mode. However, there are still numerous profitable pattern breakouts in progress. Take advantage of the probability factors that result in strong candlestick patterns.

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Good investing,

The Candlestick Forum team

The major indexes closed below the T-line on Friday. The NASDAQ had a strong sell signal, a bearish Doji sandwich, but the trading of Friday, although lower, was trading above where it opened. This gives the candlestick investor a much quicker insight as to whether the selling was very strong or not. Today’s positive trading brought both the Dow and the NASDAQ back up to the T line. The S&P 500 and the transportation index both closed above the T line. This would imply the lack of any major selling pressure in the markets. However, the Dow and the S&P 500 still need to close back up above the T line to confirm that bearish sentiment is not in control. It will be important to see how the markets trading tomorrow. A lower open, followed by lower trading, failing to get the Dow and NASDAQ up above the T line will continue to imply profit-taking/downtrend of this market.

Fortunately, candlestick patterns reveal which sectors are remaining strong. The housing market is showing strength with numerous housing stocks producing Fry Pan bottom breakouts. Kicker signals are producing good strong trades. The strength of some sectors and the strength of specific signals also reveal a lack of overall very sentiment participating in the current markets. The Best Friend signal, producing a good uptrend in our recommendation of DKS, produced a Best Friend breakout going into wave three. The strength of candlestick signals and patterns allow an investor to identify which sectors and stocks are producing the highest potential profit trades.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

Investor sentiment indicated that it had changed with a strong sell signal in the NASDAQ, a bearish Doji sandwich, and a close back below the T line. This occurred when the other indexes also sold off. The Dow and the S&P 500 closed back down right on the T line. This will make it very important to see what the premarket futures are indicating tomorrow. Keep in mind, the probabilities become extremely strong that a downtrend will be in progress after witnessing a candlestick sell signal and a close below the T line. A weaker open, in the premarket futures tomorrow, would confirm the selling is continuing. Having the ability to accurately assess the direction of the market allows an investor to scan for the appropriate trade setups, either long or short.

A major advantage of candlestick signals and patterns in their development based upon the accumulation of human nature. As demonstrated in a number of our recent recommendations, observable patterns continue to provide relatively strong bullish moves in spite of the major weakness of the market. The advantage of participating in what we call the Top Ranked signals and patterns is threefold. First, it creates an extremely high probability of being in the right direction. Secondly, the magnitude of the move is going to be much greater than mere up trending stocks during an uptrend. And finally, because of the strength of the price move created by bullish sentiment, the price movement of an individual stock will likely continue its uptrend or at least remain flat when the overall market has turned in the other direction, giving more time to get out of a trade profitably. Join us this weekend, Saturday, July 25, for a full day training on recognizing and implementing the Top Ranked candlestick signals and patterns. If you are going to spend the time and energy to locate good trades setups, you should maximize your efforts by learning which of the top-ranked signals and patterns will work the best for your trading. You will not be disappointed! You will gain some very valuable insights as to which price moves are going to produce the strongest potential moves and learn when the exact optimal entry point presents itself. Click here for more info.

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

Good investing,

The Candlestick Forum team.