and The Candlestick Forum
The market indexes, exhibiting Doji’s over the last couple days, created the environment for profit-taking, as we are witnessing today. Profit-taking is the likely scenario since the indexes continue to trade above the T line. Stay predominately long but continue to have safety stops at levels where prices should not be trading if the bulls are still in control. Short positions are also working.
Candlestick analysis has the capability of dramatically improving the probabilities of anticipating what investor sentiment is about to do, or is doing! Being able to recognize the strong candlestick signals and patterns allows an investor to make much more accurate assessment as to which stock/sectors are getting bullish or bearish sentiment. The analysis is then further enhanced by identifying which stocks in a sector are producing the strongest signals. This is putting all the stars in alignment. Recognizing a pattern set up and knowing what the results of candlestick signals will produce at breakout levels allows for the exact entry points in high profit potential trades.
The confirmation of a pattern or signal is also enhanced by using the T line, a natural support and resistance level of human nature. An investors analytical ability is greatly improved when recognizing what investor sentiment is doing at observable technical levels. Currently, the markets are overbought and illustrating indecisive trading. This creates an alert to be prepared to start taking profits and/or adding short positions to the portfolio. Which positions do you want to stay long when the market is in overbought area? The candlestick signals and patterns that are producing excessively strong bullish or bearish trend signals. You do not have to be a technical analyst to benefit from the visual aspects of candlestick signals.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
The markets like the passing of the infrastructure deal. But more specifically the sectors that are going to benefit the most. The electric vehicle sector is demonstrating strong J-hook patterns. The defense industry is showing good strength. With the market indexes well in the overbought area, maintaining the strong sectors is the logical strategy with safety stops always in place.
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Stock Chat – Thursday 11/04/21
At the end of the webinar, Steve announced his upcoming “Triple T Trading 2 Day Bootcamp” event, which he’ll present on Saturday & Sunday, October 17th & 18th.
This 2 Day training Bootcamp will provide you with visual perspectives that will improve your investing for the rest of your life.
Click here for more information.
Often asked questions – the markets are in overbought conditions, should we be taking profits? The markets are at all-time highs, should we be moving back to cash? These questions become non-relevant when utilizing the information provided on candlestick charts. Candlestick investors have a huge advantage by being able to visually evaluate what is occurring in investor sentiment, no matter where the markets are trading. The fact that the markets continue higher at all-time highs provides the correct trading criteria. The T line rule – as long as a trading entity continues to trade above the T line without experiencing a candlestick sell signal, the probability factor indicates the uptrend remains in progress. This is an important element for keeping your emotions out of your trading. It eliminates the flawed investing process of taking profits just because there are profits.
The T-line provides an extremely high probability evaluation factor that indicates when it is time to take profits. The further away you move from the T line, the higher the probability price will come back to test the T line. This makes witnessing candlestick reversal signals excessively away from the T line much more relevant. Join us on November 13 and 14th for a two-day full comprehensive training on identifying what human nature normally does. Candlestick analysis produces a trading strategy that utilizes the common sense built into identifying what is occurring in human nature.
Chat session tonight at 7pm central. Click here to register.
Good investing,
The Candlestick Forum team
The Dow is not showing any dramatic bullishness but the NASDAQ and S&P 500 are starting to show some frothiness, starting to move away from the T line in the overbought area. The strategy remains the same, stay predominately long but keep safety stops in place.
The markets are showing indecisive trading so far today, the NASDAQ and the S&P 500 flat, the Dow down slightly. Waiting for the Fed meeting? The market remains sector specific, electric vehicles and biotech’s bullish, gold stocks and solar stocks bearish. These market conditions warrant having both long and short positions in the portfolio.
The market indexes continue higher with a lot of profit-taking/consolidation along the way. Today the electric vehicle sector is showing profit-taking. The gold sector continues to show weakness. Be prepared to take profits in one sector and move to another sector. The T line remains the ultimate trend indicator for the indexes.
The results of candlestick signals and patterns are dramatically enhanced when utilizing the T line. This indicator acts like a natural support and resistance level of human nature. It greatly enhances profitability by indicating the exact time to enter a trade, continue to maintain a trade, and when to close out a trade. It acts like a natural support and resistance level of human nature.
The electric vehicle sector is currently exhibiting breakouts of fry pan bottom’s. This is significant in that the whole sector has been witnessed a buildup of investor sentiment as illustrated in the trajectory of the fry pan bottom pattern. The market indexes are in overbought conditions. However, they continue to move slowly higher. The advantage the candlestick investor has is being able to identify which stocks and sectors are maintaining the strongest bullish investor sentiment. This is demonstrated in strong patterns producing strong results in the electric vehicle sector as well as the biotech sector. The candlestick investor also has the capability of identifying sectors that are in a downtrend, when the market is an overall uptrend, to modify the risk exposure. The prudent portfolio strategy currently is remaining predominately strong as long as prices remain above the T line as well as having a few short positions in the portfolio, maintained as long as they stay below the T line. Join us November 13 and 14th for a full two day training on how to utilize the combination of candlestick signals and patterns with the T line to dramatically enhance your profitability.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
November 10th Daily Market Comments
The indexes continue to use the T-line as a support, making today’s trading more indicative of consolidation/profit-taking versus any full-scale reversal. Numerous stocks have also pulled back to the T line and showing support. Use the T line rule – as long as the markets/individual stocks continue to trade above the T line, assume the uptrend is still in progress. But keep safety stops in place.