Archives for January 2022

January 28th Daily Market Comments

Now the indexes provide good pattern analysis. If the Dow closes at the low end of its trading range, it will be creating a bearish J-hook pattern, implying more downside. If the Dow closes near the high end of the range or even positive on the day, it will have formed another hammer signal at the support area. The other indexes fit into that same analysis. This allows for being prepared for maintaining or closing short positions.


January 27th, 2022 Stock Chat with Stephen Bigalow

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Stock Chat – Thursday 01/27/22

You’re invited to join Stephen Bigalow for a full day of training Saturday, February 5th, at 9:00 am Central (10:00 am ET) presenting “Candlestick Power Pattern Trades”.
Join us Saturday Morning to learn:
  • Learn to recognize high probability candlestick pattern setups.
  • Gain valuable insights for implementing high profit pattern trades based upon the multiple confirmations of candlestick signals and patterns.
  • Discover breakout indicators most investors are not aware of with simple candlestick scanning.
  • Develop Power Pattern Trade insights that provide a constant supply of big profitable trades.
  • and much more
Pricing for “Candlestick Power Pattern Trades”


January 27th Market Wrap-Up

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.


January 27th Daily Market Comments

Watch the T-line! The indexes, although trading positive, appear to be resisting again and the T line area. Numerous short positions continue to trade lower while staying below the T line. Be careful on any bullish trades executed in these market conditions.



January 26th Daily Market Comments

After a couple hammer signals in the Dow below the T-line, there was the expected prospect there may be up bounce back up to the T line. Note that today’s high in the Dow resisted right at the T line. A bounce because of Microsoft’s earnings? Could be, but the next concern can be the Fed meeting this afternoon. Use the T line as your ultimate criteria. Numerous stocks started trading positive today but currently with indecisive candlestick formations, Doji’s.


January 25th Daily Market Comments

Potential reversal signals in the indexes yesterday, however this is why confirmation is very important. Currently the indexes are trading at or below yesterday’s open after gapping down again. Keep in mind, the bearish sentiment is still pervasive with the indexes not showing candlestick buy signals and closing above the T line. The downtrend persists based upon today’s lower trading. It may take a few days for investor sentiment to heal up.



January 24th Market Direction

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


January 24th Daily Market Comments

The T line rule works effectively! If you see a candlestick sell signal and a close below the T line, the probabilities are extremely strong your in a downtrend. The T line rule also works effectively for warning when markets/prices are too far away from the T line, providing an alert for looking for potential bounces back up to the T line. If short, watch for potential bullish bounces.


Weekly Watch List January 24th-28th 2022

If you are feeling anxiety about the current market, that means you are probably positioned incorrectly in your trading. This is from the voice of experience! Knowing that candlestick signals and patterns produce high probability results, feeling anxiety means you are not doing what the candlestick charts are telling you to do. This reality check is what has solidified the acknowledgment of what the candlestick signals are telling us at the T-line. Witnessing candlestick sell signals, in the overbought conditions, in the indexes, and witnessing closes below the T-line cuts through the emotional hopefulness that long positions are going to continue to move in an upward direction. As the Japanese rice traders profess, let the markets tell you what the markets are doing. Visual confirmation that the bears are starting to take control allows the candlestick investor to move from long positions to short positions, eliminating the emotional decisions. The T line is one of your most effective trend analytical tools. The T-line truisms are extremely high probability confirmations of bullish trends or bearish trends. Mark your calendars! February 5, a Saturday, will be a full-day training on power signals and patterns that produce extremely high probabilities you’re going to be in a correct trade. They work as effectively on the short side as they do on the long side. Using that information allows for identifying which positions are the best/strongest to move in a specific direction. Currently, the metals are starting to be sold off. NMG, HBM, AA, CENX, SYNL. The shipping stocks are starting to turn over, SBLK, ZIM, GNK, GSL. If the downtrend of the markets is continuing, the higher the probability trade setups are downtrends that are just starting from the oversold condition versus attempting to short positions that have already had excessive downward moves.


January 21st Daily Market Comments

What is really fun? Being in the right direction of a market trend at the right time. And it does not take a tremendous amount of analysis to be in the correct direction, the T line rule working in conjunction with candlestick signals produces high probability results. A good example,NFLX, ROKU. Stay predominately short until you see buy signals.