Archives for February 2022

February 28th Market Direction

How does candlestick psychology benefit your trading? It allows an investor to be mentally prepared versus wondering what the next price movement might be doing. Candlestick psychology is already built into the graphics of candlestick charts. The Japanese rice traders clearly illustrate the reaction produced by human nature time after time. Currently, the market indexes started trading positive after the gap-down reversal of last Thursday. However, a market uptrend requires more confirmation, the indexes closing above the T line. Although the Dow traded lower today, it traded back up toward the top of the trading range. This indecisive trading, still trading below the T line, indicates that more bullish sentiment is required to confirm the downtrend is over. The NASDAQ did close above the T line after the strong bullish piercing signal of last Thursday. This is producing a market environment of still being relatively defensive if buying long positions. Safety stops still need to be put in place. The appearance of candlestick reversal signals at least provides a trading platform that puts the probabilities in favor of what the signals are indicating. Take advantage of the flashcards sets that show the candlestick signals in set one and the candlestick patterns, as well as Western patterns in set two. Click here for more information.

 

Having the ability to visually analyze what is expected after the appearance of candlestick signals in the overbought and oversold conditions provides a trading platform that dramatically reduces your emotional decision-making and allows an investor to trade with the probabilities in their favor. Mark your calendars, March 26 and 27th will be a full two-day training of the major candlestick signals and patterns that will dramatically improve your ability to constantly keep high probability trades setups in your favor. Click here for more information

 

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow

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February 28th Daily Market Comments

The T line relevancy remains relevant! The direction of the market requires evidence the bulls can get the markets back up above the T line. Until that time, the market trend is still in question. Both long and short positions are viable but also require trend confirmation with the T line.

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Weekly Watchlist February 28th – March 4th, 2022

Candlestick charting explained is nothing more than analyzing what normal human nature will produce as candlestick signals and patterns. Candlestick charting explained incorporates a common-sense analysis of the reactions of human nature. Where do most people sell? They panic sell at the bottom. This is very easily identified using the candlestick charts and collaborating indicators. A gap down in the oversold area demonstrates where investor sentiment becomes exaggerated. That is where most investors can’t stand the pain of a downtrend and they want to sell out no matter what. The Japanese rice traders provided common-sense analysis. When witnessing panic selling at the bottom, start watching for candlestick reversal signals. That was illustrated in the Dow and the NASDAQ on Thursday. When witnessing a gap down in the oversold area, the candlestick investor should be alerted to be ready to cover short positions. This also allows for the aggressive trader to start buying at the most optimal times. A gap down in the oversold area and then witnessing the prices moving dramatically away from the T line produces extremely high probabilities of a reversal getting ready to occur. Knowing this allows for preparing to close out profitable short trades and getting into long positions that have great probabilities of producing bullish profits.

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February 25th Daily Market Comments

Be careful of the bounce! The indexes still need to show strength and closing above the T line. Until that happens, be aware that investor sentiment has not changed enough to start an uptrend. A large MorningStar signal in the Dow makes moving up to the T line a likely target but then it needs to confirm by getting through that level. Stay cautious.

 

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February 24th, 2022 Stock Chat with Stephen Bigalow

To Download recorded sessions;

In order to download click on the link below, once on the video page you will click on the three-dotted vertical line located at the bottom right-hand side of the video player and click on “download” to save to your files.

Stock Chat – Thursday 02/24/22

 

You’re invited to join Stephen Bigalow for a full day of training Saturday, February 26th, at 9:00 am Central (10:00 am ET) presenting “Saturday Spotlight: Bullish and Bearish Engulfing Signals”.
Join us Saturday Morning to learn:
  • Recognize where the signals work most effectively.
  • Identify which reversals will have the strongest new trends.
  • Evaluate how the magnitude of the signal greatly improves your trade probabilities.
  • and much more
Pricing for “Bullish and Bearish Engulfing Signals”
$47
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February 24th Market Wrap-Up

The psychology of candlestick patterns is easily interpreted with the graphics of candlestick charts. The psychology of candlestick patterns is simple logic professed by the Japanese rice traders. Where do most people buy? They buy exuberantly at the top. Where do most people sell? They panic sell at the bottom. Candlestick charts make it very easy to see graphically what is occurring in investor sentiment. Today’s gap down in the market indexes, because of the news of war starting in Ukraine, at the end of an extended downtrend was the immediate candlestick alert to start watching for a reversal. Knowing this is what occurs in investor sentiment, the candlestick charts provide visual confirmation of when it is time to start covering short positions and going long. Today produced numerous bullish engulfing signals. The Bullish engulfing signal is one of the 12 major signals. It produces extremely high probabilities of a reversal/change of investor sentiment. Join us this Saturday, February 26 for a candlestick Mini spotlight training on the bullish and bearish engulfing signals. One aspect is recognizing the signals, which is very easy. But more importantly, learning where the signals become much more relevant for producing high probability trend reversals. These trainings digs deep into the analysis of candlestick signals to make understanding what occurs in investor sentiment much clear. Click here to register.

 

Chat Session tonight at 7pm central. Click here to register.

Good investing,

Stephen Bigalow

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February 23rd Daily Market Comments

A downtrend will usually consist of buying in the morning and selling later in the day, continuing the downtrend. Use the T line rule, as well as the 3T rule, as long as the indexes are trading below the T line, the downtrend remains in progress

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February 22nd Market Direction

Candlestick charts explained produces much more accurate price movement analysis. Candlestick signals and patterns are easily recognized. Candlestick charts explained is merely utilizing the accumulation of the signals and patterns that illustrate the high probability reoccurrence of investor sentiment. Identifying the candlestick signals and patterns is the first step for greatly improving profitability. The next step, the more important step, is anticipating the expected results. This dramatically improves your investment perspectives. As illustrated in the Dow and NASDAQ chart, the downtrend analysis was identified as a downtrend started and the continuation of the downtrend is better assessed knowing today’s candlestick formations did not reveal a major change of investor sentiment. This evaluation allows you as an investor to continue maintaining profitable short trades. Join us this Saturday for a candlestick forum mini spotlight training going into an in-depth study of the bullish and bearish engulfing signal. Although it is concentrating on one specific candlestick signal, the important aspect of the training is to help develop a profitable investor perspective utilizing candlestick signals. Although inexpensive, you will get much more information than you expect. Click here for more information.

 

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow

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February 22nd Daily Market Comments

Bounce? The NASDAQ is trading positive but keep in mind that during a downtrend, it is not unusual to see early morning buying and then the overall trend continues in the downward trend later in the day. Currently there is nothing that illustrates a change of investor sentiment, no reversal signals and stochastics are still heading down. Ukrainian crisis, inflation, masks, over hanging concerns. Stay predominately short.

 

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Weekly Watchlist February 22nd – February 25th, 2022

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