An often asked question is which are the strongest candlestick signals and patterns. The answer is relatively simple. The signals and patterns we’ve already identified have been cultivated down to the best set ups. The nature of the market trend will indicate which signals are patterns are performing the best during that time frame. Currently, the J-hook pattern is the predominant pattern being created in these market conditions. There are extremely strong bullish J-hook pattern setting up in the oil stocks.COP, OXY, APA, CPE, NOG, OIL, HAL, DVN, MUR, MTDR, VLO. The probabilities are dramatically improved when you can see a whole sector being bought. This allows the candlestick investor to scan for which stocks in that sector have the strongest charts. This is putting the stars in alignment. The shipping stocks are also showing good bullish patterns. FRO, DAC, TNK, DSSI. Information providers are also acting strong GRPNB, FSLY, BILI, VERI. As long as the market indexes continue to trade above the T line, anticipate the bullish candlestick chart patterns are going to continue to perform well.
December 3rd Daily Market Comments
Although the uptrend in the indexes is slow, the NASDAQ is keeps hitting new all-time highs. Numerous uptrending stocks are moving up in a very choppy manner but the final criteria for remaining in those positions is the T-line. As long as they stay above the T-line, you can stay long. The same is true with any existing short positions, stay short as long as trading stays below the T-line. When the markets are in a choppy mode, the T-line becomes a very important indicator for keeping from getting whipsawed in and out of positions. Stay predominately long.