Archives for September 2020

The buildup of investor sentiment in specific candlestick patterns has the probability of producing bullish trade profitability even when the overall market is selling off hard. Our recommendation on CLSK a set up for a frypan bottom pattern. It traded up 28% on the day. The candlestick investor has the advantage of having positions in the portfolio that are still going to produce profits or at least not selloff dramatically when the overall market is selling off.

Two notable candlestick factors are being illustrated today. First, the T line rule! As the indexes were demonstrating, when trading below the T line, the probabilities of the down trend is extremely strong. Although the Dow appeared to be supporting at the 50 day moving average on Friday, it did not do any candlestick formation that illustrated the bulls were back in control. The NASDAQ and the S&P 500 did not show any evidence of bullish sentiment on Friday, trading below the T line, indicating more downside. Secondly, numerous recent recommendations, that were based upon candlestick patterns, are holding up well, either trading positive, CLSK, VVPR, SHLL, ZM or trading relatively flat today PEIX,WKHS,APPS. This demonstrates an underlying benefit of trading pattern. It allows for more time to get out of a trade reasonably well even though the overall market is dropping heavily.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

Today’s market action clearly illustrated how candlestick patterns work effectively in spite of the overall market direction. Frypan bottom patterns are producing very strong profits, DKNG, WKHS, and PENN all moved up with good strength even though the indexes were trading off. The “message” is another high-profit trade set-up that works extremely effectively. Today KODK confirmed the “message” of yesterday.SRNE provides the same opportunity. Today’s gap up, followed by profit-taking, produces a high probability trade entry on any positive trading tomorrow. Utilizing the patterns and signals setups allows candlestick investors to constantly produce profitable trades in their portfolio.

Today’s gap down in the indexes showed a little bit of recovery but not enough to indicate the bulls or the bears being in control. This provides a sideways market potential. Fortunately for the candlestick investor, the sideways mode of the general market does not deter being able to scan for high-profit trades. Once a good trade is executed, the T line is one of the most productive trend indicators. When used with candlestick signals and patterns, the natural support and resistance level of the T-line dramatically enhances the probabilities of a trend continuing. Utilizing this combination keeps investors from getting whipsawed in and out of profitable trades. Having the ability to analyze a trend correctly keeps the emotional decision-making process out of one’s investing. Join us September 26 for a full-day training of how the common sense aspects built into candlestick analysis dramatically reduces your emotional investment flaws.

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

Good investing,

The Candlestick Forum team

Is the market trend reversing? Candlestick signals at relevant technical levels, that everybody else is watching, produces good evidence the bulls are starting to take control again. The Dow formed a MorningStar signal today, off the 34 EMA, and closed above the T-line. The NASDAQ gapped up, above the open of Friday, and formed a Doji. This sets up a strong probability that a positive open tomorrow is going to create a bullish flutter kicker signal, one of the strongest reversal signals, and the likelihood of closing above the T-line. This adds good evidence the uptrend may be back in progress. Utilizing the transportation index also allowed for assuming there was not going to be a major reversal in the markets with the simple logic that if one index is trading strong while other indexes are trading lower, it merely indicates funds moving from sector to sector, not leaving the market.

Fry pan bottom patterns continue to produce very strong profitable trade results. A number of fry pan bottom patterns are in effect, i.e. WKHS, DAR, PENN, DKNG. All boats will rise in a rising tide but the results of candlestick pattern breakouts are boats that are going to rise a heck of a lot faster. The information built into each candlestick signal allows the candlestick investor to have a much more clear analysis of a price move based upon the historical results of the candlestick signals and patterns. This also creates a trading program that dramatically reduces emotional trading. Expected results that have been proven for hundreds of years, based upon normal human nature reactions, allows the candlestick investor to be in high probability trades with a high degree of accuracy.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.