Archives for November 2021

Candlestick analysis allows the 2+2 analysis that adds multiple high probability results in a trend evaluation. Currently, the NASDAQ and the S&P 500 are in uptrends, using the T line as a support level. The Dow sold off hard today but bounced back up after hitting the 34 EMA. Now the Doji rule can be put into effect, the trends will usually move in the direction of how prices open after a Doji. The simple rules allow investors to get a much more accurate assessment of the overall market trend, allowing the appropriate trades to be put in place based upon their individual chart patterns.

The fry pan bottom pattern illustrates the buildup of investor sentiment. The patterns provide three major benefits. First, it illustrates the direction of price movement with a high degree of accuracy. Second, the magnitude of the price move is going to be much greater than merely up trending charts. And finally, because candlestick patterns are a buildup of investor sentiment that can be easily recognized, a reversal in the overall market will not usually immediately affect a pattern that has been building up, allowing for more time to get out of a trade profitably. Candlestick signals allow investors to immediately evaluate what the investor sentiment is doing at technical levels that everybody else is watching.

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Good investing,

The Candlestick Forum team

Even when the markets are not showing any decisive direction, simple candlestick scans can identify which sectors are producing the strongest trends for long positions or the weakest trends for short positions. As illustrated, good strength has been coming back into the electric vehicle sector for the past few weeks. This allows investors to be establishing positions in stock/sectors that produce the highest probabilities of producing profitable trades. This is not rocket science! This is merely identifying the candlestick signals and patterns the Japanese rice traders identified over the last 400 years. Human nature works the same way time after time. Not only does candlestick analysis identify when it is time to be buying, it also identifies when it is time to take profits. There are only six bullish candlestick signals and six bearish candlestick signals that need to be identified. These are considered the 12 major signals. They produce 99.9% of the profitable trades. This keeps from having to learn all 50 or 60 signals that don’t occur often enough to expand mental time and energy to learn them.

The frypan bottom pattern is being witnessed in the electric vehicle sector. A pattern, in conjunction with the T line creates very good probability analysis. The T line/fry pan bottom rule – you can stay long after witnessing a frypan bottom breakout as long as price does not close back below the T line. These are the simple trading rules utilizing the affects of human nature that allow investors to keep their emotions out of their trading decisions. The candlestick signals and patterns have expected results. The T line can confirm the results. This combination allows investors to gain control of their own investment perspectives, dramatically reducing emotional decisions.

Good investing,

The Candlestick Forum Team

The T-line factor – a candlestick buy signal and a close above the T-line produces extremely high probabilities an uptrend is in progress. A candlestick sell signal and a close below the T-line produce extremely strong probabilities a downtrend is in progress. This is a simple analysis that can be easily confirmed. Go back through charts and see what the trends do with a high degree of probability above and below the T line. The indexes closed below the T line yesterday. This was after sell signals had formed during the prior days. Today, note how the Dow traded higher initially but resisted right at the T line and continue to trade lower. The NASDAQ and the S&P 500 opened at the T line and traded lower from there. Even though the NASDAQ was up 81 points today, the candlestick investor can visually evaluate there was no buying after the initial open. This information provides huge advantages for correctly analyzing the market trend or stock price trends.

The T line also reveals when a stock/sector is continuing its trend. As witnessed in the electric vehicle sector, note how numerous stocks in that sector use the T line as support and continue their uptrend. When you combine the analysis of a candlestick pattern and use the T line to show confirmation of that pattern, you dramatically reduce your emotional trading. Join us this weekend for the two day Triple T training, examining how the T line greatly enhances your price trend analysis. Expect to be brain fried and butt sore at the end of the training, but you will be able to visually recognize high probability trades set ups that you can use for the rest of your investment career.

Chat session tonight at 8 PM ET, keeping your emotions out of your trading. Click here to register.

Good investing,

The Candlestick Forum team