Archives for December 2021

Although the market indexes revealed a consolidation/profit-taking day, the NASDAQ sold off with excessive force. The Dow traded flat and the transportation index traded higher. But the NASDAQ sold off all the way back to the T-line. Today’s trading because the alert for the market environment still be in very stock/sector-specific. High tech stocks sold off while homebuilder stocks continued higher. These market environments are what make candlestick scans more relevant. Simple scanning techniques can pinpoint which sectors are trading bullish while identifying which sectors are selling off.

The T-line rule remains a very relevant trend indicator. Candlestick signals and patterns allow for much more clarity as to when to take profits. Join us tonight in our free chat room session concentrating on the indicators that allow for optimal profit-taking.

This past weekend we presented the optimal entry points for daytrading as well as swing trading. This was a Mini spotlight training that demonstrated a few extremely high probability daytrade setups. Mark your calendars! December 18 will be a full-day training for the optimal daytrade/swing trade entries. This will include approximately seven candlestick trade set ups that produce high probability profitable day trade results. Click here to register.

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

Good investing,

The Candlestick Forum Team

The market reversal was easily identified with the Doji sandwich set up. A positive open after Friday’s Doji made the trend analysis relatively simple. A positive open today with likely have the same magnitude candle is what occurred on Thursday prior to the Doji. This information allows the candlestick investor to immediately enter trades that were showing the same pattern set ups. Numerous Doji sandwiches occurred today creating excellent entry points for both day traders as well as swing traders. The Dow forming a Doji sandwich after it formed a bullish Harami last week right on the 200 day moving average provided very good evidence the bulls were back in control, or at least the bearish sentiment had disappeared.

Having the ability to recognize strong reversal signals allows for entering trades at the ultimate entry points. As illustrated in the home builders sector, numerous Doji sandwich signals also indicated strong J-hook pattern expectations. This allows for recognizing the next price move magnitude, wave one of a J-hook pattern will usually equal wave three. Recognizing today’s strength, forming bullish signals in the market indexes also produced the appropriate times for taking good profits on short positions that have been working for the past few weeks. Not only to candlestick signals tell you when it’s time to buy a position, they also accurately indicate when it is time to take profits.

Good investing,

The Candlestick Forum Team

A bullish Harami formed in the Dow today at the 200 days moving average in the oversold condition. This produces a high probability reversal setup. Positive trading tomorrow would confirm the bullish Harami. The first target would be to see what type of signal occurs at the T line. These market conditions produce the trading environment that allows for profitable trades both on the long side and the short side. The ultimate indicator is the T line. As illustrated in our recommendation to short AFRM, visually identifying the blue ice failure pattern produces an extremely high probability the downtrend could likely move to the 200-day moving average. Utilizing high probability trade setups, such as flutter kicker signals, trend kicker signals, and Doji sandwiches allows for excellent day trade and swing trade entry points. Join us this Saturday, December 4 for a Mini spotlight training on daytrade entries. This information allows investors to be prepared for high probability profitable trades. $27 for members, $47 for nonmembers. Click here for more information.

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

Good investing,

The Candlestick Forum Team