Archives for January 2022

The market trend reversal was confirmed with today’s positive trading breaking all the indexes up above the T line. Keep in mind, what reverses market trends is a change of investor sentiment, easily identified with candlestick signals. Witnessing a bullish reversal signal in the Dow on Friday required bullish confirmation today. However, it also provides an alert that if the premarket futures were going to trade positive on the open, short positions that were showing reversal signals in the oversold area should have been closed out immediately. This is the great benefit of knowing what to expect for the confirmation of reversal signals.

It also allowed for immediately entering bullish trades that were confirming reversal signals on Friday. Today’s gap up in NFLX not only confirmed a bullish reversal, but the gap up after Friday’s Doji produced the best friend signal, allowing for entering that trade immediately with good confidence the bulls were definitely in control. Join us this Saturday, February 5, for a full day of training on identifying the signal and pattern combinations that produce high probabilities of being in a correct direction trade as well as powerful trade price moves. This provides investor confidence as well as high-profit potential. Click here to register.

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Good investing,

The Candlestick Forum Team

The T-line is a powerful candlestick emotion-eliminating indicator. It keeps candlestick investors from getting whipsawed. Candlestick signals are the graphic illustration of what is occurring in investor sentiment during specific time frames. The T line is a very strong probability indicator, downtrends remain below the T line, uptrends remain above the T line. Combining these two factors produce an extremely accurate and powerful trading analysis tool. As illustrated in the market indexes over the past few trading days, candlestick buy signals were formed in the oversold area. This either indicated a reversal of the market trend or merely a bounce. The lack of any close above the T line indicated merely a bounce in the market trend.

Having the ability to analyze what is occurring in investor sentiment eliminates emotional trading and the dependency of listening to the talking heads on financial news stations. Candlestick signals are the actual decision-making executions made by investors versus conjecture of what will occur in the overall markets. Numerous short positions have worked extremely well in conjunction with the market indexes revealing sell signals and closing below the T line a few weeks ago. Not only do candlestick signals and patterns identify the correct direction but candlestick powers signals reveal which trends will have the greatest strength during a specific market trend. Click here to register.

The simple logic built into the Japanese rice traders’ chart analysis allows candlestick investors to maximize profits. Today, the gap down in the indexes provided an alert. The Japanese rice traders illustrate where most people sell, they panic sell at the bottom. That is the alert demonstrated by a gap down in the oversold area. The next alert was the visual analysis of the excessive distance the indexes had moved away from the T line. That combination was a strong alert to start watching for a market reversal.

The 10-minute chart becomes a valuable tool for indicating when an excess selling had come to an end. Candlestick buy signals on the 10-minute chart and a close back up above the T line revealed where bulls were starting to step in. Candlestick chart analysis is merely the graphic depiction of what is occurring in investor sentiment. You can maximize your profitability by closing out short trades at the most optimal time when taking the simple steps to analyze when investor sentiment is changing well in oversold conditions. This is what amplifies the profitability of power trades. Mark your calendars, February 5 will be a full-day candlestick training on identifying the power signal and pattern trades. You also get a lot of this repetitious learning process in our daily chat rooms. Join us for a free trial. You will gain much more insights into trading than you expect. Click here for more information

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Good investing,

The Candlestick Forum Team