and The Candlestick Forum
A knee-jerk reaction in the NASDAQ. The Dow continues to trade higher. many NASDAQ stocks opened lower but are currently trading above where they opened. The market is still very sector specific. It looked like the electric vehicle sector was picking up strength yesterday. Today many opened lower in that sector but starting to move up slowly again. The Robin Hood short squeeze stocks, GME, AMC appear to be picking up strength again.
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Stock Chat – Thursday 03/11/21
Identifying a major market reversal is much easier utilizing candlestick signals. As demonstrated in this week’s trading, the NASDAQ did a kicker signal that showed a strong change of investor sentiment. The kicker signal is the strongest individual candlestick signal. Applying this analysis with the Dow continuing to trade above the T line simply indicates the uptrend was now in progress. This instigated closing profitable short positions and going back to the long side. Simple logic dictates that being able to identify the direction of the overall market, then being able to identify which sectors is acting the strongest, and then identifying which stocks in that sector are producing the strongest uptrend potential basically puts all the stars in alignment. This is how you can dramatically improve the probabilities of not only being in the correct direction, but also being in the strongest individual stocks in a sector.
The electric vehicle sector demonstrated strength across the board. Today, a good number of electric vehicle stocks were up over 10%,BLNK, QS, FCEL and a good number more. Knowing what each candlestick reversal signal illustrates allows the candlestick investor to dramatically improve their trend analysis capabilities. You dramatically improve your trading results by being able to identify which stocks have the strongest upside reversals. Join us on March 27 and 28th for a two day comprehensive training on candlestick analysis. The most powerful aspect of this training is not only identifying the strong reversal signals and patterns but also understanding the investor sentiment that creates those reversals. This combination allows you to analyze price moves with the same accuracy as somebody that has been trading in the markets for decades. Put the probabilities in your favor!
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Good investing,
The Candlestick Forum team
The Dow and NASDAQ are now back in sync. The positive expectations of the relief package appears to be the bullish incentive. The NASDAQ is showing strong signals, a kicker signal two days ago and is currently producing a trend kicker signal today stay predominately long. Currently there is no apparent evidence of bearish sentiment, indicated by all the indexes trading above the T line. The electric vehicle sector is showing strength across-the-board. Oil stocks are showing good strength.
The indecisive nature of the market continues. Although the NASDAQ showed a strong reversal signal yesterday, there currently is no follow-through. The Dow is trading positive and is currently trading at the resistance level that it has been having trouble getting through. The indecisive uptrend of the market at least reveals there is no dramatic selling pressure. This makes market conditions orienting trading toward analyzing individual stock charts. but all positions still require having safety stops in place. It appears as if the electric vehicle sector is starting to get attention again.
The candlestick T-line rule continues to produce strong profits. If you have the problem of taking profits just to take profits and then realizing you took profits way too early, the candlestick T-line rule eliminates that problem. As long as a price trend stays above or below the T line after candlestick reversal signals, the probabilities are extremely strong the trend will continue. This is been evident in our recent short positions,ARCT, INMB, BILI, CLSK, CHWY, as well as others. How long do you stay in a short position ? Simple! Until you see a candlestick buy signal and a close back up above the T line.
EYES is another example of how powerful candlestick breakout signals identify potential strong price moves. The kicker signal became evident as the price on Friday traded around the $2.90 level. That same process identified our OCGN trade at $0.73 and eventually close it out in the $17.50 area. The rhetorical question is always, will all breakouts produce huge price moves? definitely not, but it does put you in situations where the probabilities of being in a big price move is greatly in your favor. The probabilities are also enhanced by using the RARE process, investigating what news because the breakout and then evaluating whether that information was going to continue to stimulate bullish sentiment. Know and understand candlestick signals and you will dramatically improve your trading abilities.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
Explosive profits can be made utilizing the kicker signal! The kicker signal is the strongest candlestick reversal signal. It illustrates a dramatic change of investor sentiment. Utilizing the candlestick RARE process allows the candlestick investor to participate in high profit trades with a high degree of probability. This was illustrated in the huge percentage move in EYES. Research analysis reverse engineering indicated there was great future upside potential for the stock price. Was anticipated to occur all in one day? Not necessarily, but the great advantage of candlestick analysis is it puts you in trade positions where the probabilities are extremely strong that you will participate in big price moves.
Although the market indexes traded very strong bullish on Friday, the Dow did not actually produce a reversal signal. This implies there could be more upside but not with the same probability as if an actual candlestick reversal signal had occurred. Oil and gas stocks have produced strong reversal signals/patterns. MNRL. PVAC, OII, NOV, APA, FTSI, PTEN. Homebuilders are showing good strength, GMS, CNR, LEN, TPC. Utilize the strong candlestick signals and patterns to improve the probabilities of being in the correct trade at the correct time.
T-line rule – the downtrend remains in progress as long as the indexes cannot close back up above the T line. Note how the early bounce in the Dow moved up and failed right in the T line area. Obviously the bearish J-hook patterns are working very well today, ARCT, SOL, CHWY,FUBO and the blue ice failure patterns are working very well, CLSK, INMB. Stay predominately short until the appearance of any bullish signals in the indexes.
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March 15th Daily Market Comments
The Dow is trading slightly higher but it is nudging the upper trend line. Watch for profit-taking. The NASDAQ continues to trade above the T line and has the prospects of a bobble breakout. But until that time it appears as if the market trend is in a mild consolidation stage. This is not affecting the strong sectors. The electric vehicle sector continues its uptrend. These market conditions are still making trading very stock/sector specific.