Yesterday, the bearish engulfing signals in the Dow and the S&P 500 and the close below the T-line illustrated a dramatic change of investor sentiment. The hanging man signal was confirmed with a lower open and the lower trading in the NASDAQ.
Archives for September 2020
September 4th Daily Market Comments
September 4, 2020
Yesterday, the bearish engulfing signals in the Dow and the S&P 500 and the close below the T-line illustrated a dramatic change of investor sentiment. The hanging man signal was confirmed with a lower open and the lower trading in the NASDAQ.
September 3rd Market Wrap-Up
September 3, 2020
Candlestick investors have a huge advantage for identifying when a reversal is about to occur. The Japanese rice traders profess very simple results of human nature, where do most people buy? They buy exuberantly at the top. Yesterday, it was recommended, in our afternoon comments, to take profits. This recommendation was the result of witnessing the markets gap up in the overbought condition. This illustrated exuberance. The NASDAQ gapped up and formed a Hanging Man/Doji signal. This produced the alert for a reversal in the market trend. A lower open, after a Hanging Man signal, induces taking profits immediately. Having this type of forewarning, based upon normal human nature, allows the candlestick investor to create much better profitability by getting out of positions knowing that the market trend has a high probability of reversing.
There are very strong benefits of utilizing candlestick patterns. Our recommendation of TUP was based upon a fry pan bottom breakout this past week. There are three major advantages to trading candlestick patterns. First, the probabilities of being in the right direction is extremely strong. Secondly, the magnitude of a pattern breakout move will be much greater than merely up trending stocks during an up trending market. Finally, because a pattern is a buildup of investor sentiment, prices will usually hold up much better even when the general market might move excessively in the opposite direction. This gives the investor more time to get out of a trade profitably. Individual candlestick signals, such as the kicker signal and the bearish left/right combo provided strong short trade expectations. The candlestick signals and patterns produce dramatically greater probabilities of being in strong profitable trades.
No Chat Session Tonight.
Good investing,
The Candlestick Forum team
September 3rd Daily Market Comments
September 3, 2020
The markets provided the hint yesterday there would be profit-taking Today. The Dow and the S&P 500 gapped up in the overbought area. The NASDAQ formed a hanging man signal. That information provided the stimulus to take some profits. Unless there is some very strong buying in the markets going into the close today, expect some more selling.
September 2nd Daily Market Comments
September 2, 2020
The strength of the markets are revealed by not only trading above the T-line, but using the 3T-line as support. The patterns continue to work,GRAF up strong after a slow curve,SHLL up strong again off of a J-hook pattern using the T line as support. The prognosis remains the same, continue to stay long as long as the uptrend remains above the T line. Take advantage of the pattern breakouts that allow for excessive profitability during an up-trending market.
September 1st Daily Market Comments
September 1, 2020
The NASDAQ in a steady Eddie, it just won’t quit. The Dow consolidated back to the T-line and is showing support at that level. The uptrend remains in progress. Economic indicators continue to show expansion of the economy. The evaluation is simple, as long as the indexes trade above the T line, the uptrend remains in progress.
September 8th Daily Market Comments
Although the market indexes traded well-off their low on Friday, they did not show any decisive reversal and they were still closing below the T-line. This makes the T-line rule the predominant factor, a downtrend has greater prospects when price moves close below the T-line.