Archives for September 2021

Candlestick signals and the T line produce high probability analysis when analyzing the overall market trend. The strong bearish candlestick signals and the indexes closing below the T-line allows the candlestick investor to be in the appropriate positions. Go with the flow! Knowing the markets are in a strong downtrend allows for scanning for the strongest bearish trades. This is a combination of candlestick signals and gaps. Witnessing gaps after a candlestick signal demonstrates the strength of the new trend. This works both on the short side as well as the long side as illustrated in NET and STNG.

Candlestick’s logic is very simple. The signals and patterns illustrate high probability price moves. Applying the appropriate option strategy with that price move dramatically improves profitability. When you put all the stars in alignment, being able to analyze the direction of the markets, identifying the strongest signals and patterns that will benefit from the market direction, and then applying the most profitable option strategies, you gain a huge advantage for being in the right trades at the right time. Join us Saturday, October 2 for a free candlestick forum mini spotlight training utilizing the appropriate option trades for the appropriate price moves. Click here to register

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

Good investing,

The Candlestick Forum team

The market indexes provided some warning Today. The NASDAQ and the S&P 500 gapped down to the previous day’s trading lows. This is not a bullish indication! If the bulls are in control, the indexes should not be gapping down to the previous trading day low. However, the Dow and the transportation index traded higher. This is now providing the distinct analysis the market is providing specific sectors as strong investment areas while other sectors are showing weakness. The simple scanning techniques of candlesticks allow investors to pinpoint which of those sectors/stocks are acting the strongest. The oil stocks and the transportation stocks are continuing to show good strength, coming up off of strong candlestick signals and patterns.

One of the strongest bullish signals that are not easily recognized is the message signal. It is a strong gap up but profit-taking occurring during the rest of the time period. Fortunately, candlestick analysis provides a very common sense entry strategy and expectation of what is likely to occur after the selling has stopped. This is been illustrated in our recommendation recently of TVTX. The same setup is now occurring in MRIN. Knowing that there is likely to be a steady uptrend, a recommendation in our options room was to buy the MRIN October 10/12.50 call spread for $0.75. The price merely has to move from the $10.50 level to the $12.50 level. We will be doing a free options trading strategy session this Saturday, October 2 to demonstrate how simple spread strategies in the appropriate chart move provides much greater profitability with much less risk. Join us this Saturday, this one-hour training session is free and you get an immense amount of common sense trading information. Click here to register

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

The Dow produced a very obvious reversal signal, a MorningStar signal, one of the 12 major candlestick reversal signals. Additionally part of the signal had an inverted hammer signal. The inverted hammer signal alone in the oversold area, getting positive confirmation has a 95% probability or greater of an uptrend starting. Today’s positive trading, closing the Dow and the NASDAQ well above the T line also dramatically improves the probabilities that the uptrend has started again.

The best way to take advantage of an uptrend in the markets is defined the stocks that have the strongest bullish candlestick signals. The best friend signal is a powerful bullish indicator, a Doji followed by a gap up. As witnessed in our accumulation of
QS, the best friend signal of this week has produced excessively strong profits.VET was recommended because of the best friend signal yesterday which would be a strong indication a J-hook pattern was in progress. A major advantage of candlestick analysis is that it not only identifies the direction of a price move but can identify the signals/patterns that are going to produce the strongest price moves. Join us October 2 for a free Saturday training session on which option strategies to utilize to maximize the benefits of strong candlestick price patterns.

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

Good investing,

The Candlestick Forum team