Archives for October 2021

The evening star signal that formed in the Dow today, revealing a failure of the 50-day moving average a second time, and closing right on the T-line makes for a simple trend analysis assessment. If the premarket futures indicate a lower open tomorrow, a downtrend should be back in progress. Additional evidence was the NASDAQ closing below the T line and failing to break up through the downtrending resistance level. This visual evidence implies adding short positions on a weaker open tomorrow.

Strong sell signals as seen in CMCSA and CHGG is a high probability of short trade situations. Simple logic dictates that if you see strong sell signals in individual stocks and the market, in general, is starting to sell off again, shorting these positions produces high probability expectations. Join us on October 23 for a full-day training of identifying the top-ranked candlestick signals and patterns, the most powerful signals and patterns. Additionally, learn which options strategies produce the best results in conjunction with the strong candlestick patterns. 2+2, putting the probabilities in your favor and then maximizing profits from those probabilities.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

The graphics of candlestick charts revealed a change of investor sentiment was setting up based upon the bullish signals that had occurred over the last few days of trading. The final criteria still needed to be confirmed, a close above the T-line. The bullish sentiment that was illustrated over the past week allow investors to be prepared to start covering short positions that were in the oversold area and starting to show bullish participation. This also allowed for establishing long positions immediately if it appeared the indexes were going to start trading back up above the T line. This is where witnessing the premarket futures showing good strength allows candlestick investors to move instantly and aggressively. Having the ability to identify when a major reversal is about to occur allows for establishing profitable trades at the optimal entry points. This allows for entering profitable trades early.

Join us this Saturday for a Mini spotlight training on which options strategies to use with corresponding candlestick signals and patterns. A combination of calls or puts, with bullish or bearish spreads, is usually much more effective in profitable than merely buying calls or puts on their own. A major advantage of candlestick charts is identifying when a new price move is about to occur. Establishing the appropriate option strategy allows investors to maximize profits well diminishing risks. Click here for more information.

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

Good investing,

The Candlestick Forum team

How to learn quickly the effectiveness of the T line rule? Look at any chart that shows a sell signal and a close below the T line, then analyze what the trend did after the close below the T line. This is words of experience. It does not take many times to be sitting in a losing position, hoping for a reversal, wondering why we are sitting in a losing trade again. Simple observation indicates the first close below the T line, especially in the overbought area, was where the long trade should have been closed and start looking for short positions.

The indexes have failed at the T line for the past few weeks, making the 200-day moving average a likely target. The graphics of candlesticks allows investors to see much more clearly what a trend is doing. Obviously, closing out long positions and adding short positions when the market indexes started showing sell signals will dramatically improve your profitability and take the anxiety out of sitting in long positions when the market is going the other way. Join us on October 9 for a Mini spotlight training session on applying the appropriate option strategies to specific candlestick patterns. You will gain great insights into which simple option strategies perform the best based upon the information built into candlestick charts. Click here for more info

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team