Archives for January 2021

When to take profits! Join us this Saturday, January 16 for a full day of comprehensive training on the high probability profit-taking strategies produced by the simple visual analysis of candlestick. You do not have to be a sophisticated technical analyst to take advantage of the information revealed in candlestick charts. It becomes very obvious when investor sentiment is changing. So obvious it is like hearing somebody in a nudist camp say ” Boy, I would sure like to see her in a tight sweater.” Join us this Saturday. You will get more information than you expect.

An assumption, the electric vehicle industry is not only here to stay but likely has a huge market potential over the next few years. This makes simple candlestick scanning techniques valuable to the short-term trader as well as a long term investor. The electric vehicle industry is growing rapidly. Why? Two important elements! First, the general public favors electric vehicles that do not create pollution. This is the most powerful aspect of the popularity of electric vehicles. Secondly, technology! The technology advances in the power generation/batteries of electric vehicles are advancing exponentially. Simple candlestick scans will continue to illustrate which companies in this sector is producing the best technology. There will be many short-term, as well as long-term recommendations in this area. The Candlestick Forum will be providing a new service directly oriented toward the electric vehicle trading sector. Because technology is moving so fast in that industry, the candlestick charts will allow for reverse engineering analysis to identify which companies are advancing faster than others, producing better trading opportunities. This can be applied to the short-term trader as well as the long term investor.

The hanging man signal on Friday in the indexes revealed the potential of profit-taking/reversal if the indexes traded lower today. Profit-taking would be more implied based upon the indecisive candle that has formed in the indexes today. This still indicates the potential for more profit-taking, probably back down to the T line, but not indicating a full-scale reversal of the market trend. The strategy remains simple, stay long in the bullish sectors that continue to trade above the T line.

Both the Dow and the NASDAQ showed good strength above observable technical levels. The Dow continues to trade up above the resistance level that has developed in the markets over the past two months. The NASDAQ is producing a J-hook type pattern trading well back up above the T-line. This is producing a major benefit for candlestick investors. Once identifying the candlestick pattern breakout set ups, the price move results have extremely good profit potential because there is currently the lack of any bearish fear in the market trend. This provides additional strength when a bullish candlestick pattern breaks out. As illustrated in our recommendation this week on NCTY, the fry pan bottom breakout produced an inordinately strong profit. Not only to candlestick charts reveal when a high profit trade set up is about to occur, the same investment psychology allows candlestick charts to indicate when it is time to take profits.

Numerous charts, especially in specific sectors, such as the electric vehicle, lithium battery, and biotech sectors are producing very strong candlestick patterns. Not all stocks/sectors are participating in this uptrend. Candlestick scanning techniques allows an investor to pinpoint which sectors are producing the best results based upon identifying the signals illustrating strong bullish sentiment. This allows for concentrating investment funds into areas that are performing the best. There is also evidence of sector rotation. A major advantage of utilizing candlestick analysis is identifying when it is time to take profits. Join us January 16 for a full day training on the indicators built into candlestick charts that allow for taking profits at the high probability areas. It is just as important for knowing when to be buying as it is for knowing when to take profits.

Because of a change of politics in Washington DC, simple candlestick scans have revealed where the next big price moves are likely to occur. Lithium batteries are making dramatic changes in the electric vehicle area. Candlestick charts allow for the identification of which stocks in those sectors will produce the highest probabilities of strong profits. This is not rocket science! This is merely common sense analysis based upon the bullish signals and patterns that Japanese rice traders have identified over the last 400 years.

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

Good investing,

The Candlestick Forum team

Candlestick charts produce very relevant profitable trade information. The first day of a trading year usually illustrates what the major money managers around the world have assessed as being the strong sectors going into the next year. This becomes graphically evident with candlestick charts coming out of the chute the first week of a trading year. Today, the markets revealed they are still in a very tentative state, probably being affected by the Georgia election, investors not sure what the government policies will be if there is a change of power in the Senate. If that was the reason for the market selloff today, it doesn’t matter! The candlestick investor can clearly evaluate that there was selling occurring in the market trend. The Dow formed a bearish engulfing signal while once again failing to breakthrough the upside resistance level. More compelling, the NASDAQ did a bearish left/right combo, a strong reversal signal in itself. Add the fact that it also closed below the T line, which it hasn’t done for many months, clearly indicated there has been a change of investor sentiment. This allows the candlestick investor to make an immediate position decisions for their portfolio. Long positions that are starting to show a change of investor sentiment should be closed out, with the idea that there will be better places to put trading funds. Likely, the addition of short positions is logical if the markets show more weakness tomorrow.

The bullish sectors were evident. Strength was seen in the electric vehicle stocks as well as gold stocks. Numerous gold stocks and silver stocks produced strong bullish kicker signals today. This would indicate much more upside in that sector. The electric vehicle stocks are demonstrating strength after supporting at observable support levels and continuing to trade positive in week market conditions. Our recent recommendations in GP and XPEV allow investors portfolios to continue to show bullish profits even when the overall market conditions are tentative. Adding gold stocks to the portfolio is also logical based upon the new strength in gold and silver. Other sectors are starting to show weakness. Join us this Saturday, January 9, for a full day training on the indicators that produce high probability results for when it’s time to start taking profits. Approximately six major indications allow candlestick investors to evaluate when the probabilities of the bullish price move is starting to diminish. Being able to identify these indicators allows an investor to make decisions without emotions effecting there trading.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team