and The Candlestick Forum
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 02/17/22
How to read candlestick charts is one of the initial questions we receive when people are learning how to use candlestick analysis. How to read candlestick charts becomes relatively simple by putting common sense aspects into the visual analysis. High probability trades setups incorporate the first analysis is which direction is the general market heading. Logically, a bearish trending market would induce scanning for the best bearish trades. This is what is occurring in the current market trends. The market indexes appear to be setting up for bearish J-hook patterns. This makes scanning and identifying individual stock charts that are also revealing bearish J-hook patterns high probability trades setups.
Chat session tonight at 8 PM ET. Click here to register.
Good Trading,
Stephen Bigalow
The T-line has a major psychological aspect. It indicates investor sentiment. If trading remains below the T line, investor sentiment is more susceptible to selling on any indications of bad news. This is evident in the lack of positive news coming from the Ukrainian situation. Stay predominately short. As usual, any bullish positions require compelling charts to stay long.
Yesterday, the failure of the Dow, S&P 500, and transportation index closing above the T-line required bullish confirmation today to indicate a reversal has occurred. The NASDAQ was the only index to close above the T line yesterday but today’s bearish trading produces evidence the downtrend remains in progress. Long positions need to be very very compelling at this point. The portfolio should be oriented toward the short side.
Relief rally? Watch the T line. The Ukrainian situation appears to be defusing, but inflation may still be a negative to the markets. Electric vehicle sector acting well. The Dow is currently nudging the T line. The NASDAQ opened at the T line and currently hovering at that level. Stochastics are still heading lower in the indexes. This makes it important to see where the markets close today. Obviously, short positions did not execute.
Candlestick chart patterns take the guesswork out of trading. Candlestick chart patterns produce high probability expected results based upon human nature working the same way time after time. The bearish signals produced in the indexes last week made it clear that the bears have taken control. The downtrend can be easily assessed, once the candlestick signals are witnessed, utilizing the T line rule. As long as the indexes continue to trade below the T line, assume with a high degree of probability the downtrend remains in progress. Currently, there are a number of strong bearish J-hook pattern setups in progress. The validation of the J-hook patterns are enhanced with strong bearish candlestick signals, such as the bearish best friend signal. When you add the visual analysis of the direction of a signal trend with the confirmation of a candlestick pattern, you can dramatically improve your probability of being in the right trade at the right time. The candlestick signals are the building blocks for learning how to correctly analyze price and trend movements. Once you recognize the high probability signals, the 12 major signals, and you understand the logic that created those signals, you then have a grasp for how price movements work the same as a trader that has been trading for decades. Read “High-Profit Candlestick Patterns”. This will provide a very clear understanding of how candlestick analysis performs with a high degree of probability. Click here for more information
General observation, a market downtrend usually experiences buying in the early part of the day and then the trend continues later in the day. Stay predominately short until there is a visible reversal signal in the market indexes.
Candlestickstockcharts become much higher probability trades setups when candlestick analysis is applied to the overall market trend. The #candlestickstockcharts that have formed strong bearish signals, such as the bearish best friend and the bearish flutter kicker signals, are performing in conjunction with the same signals formed in the market indexes. This greatly improves the probability of being in the direction of the overall investor sentiment. Whenever candlestick stock charts are revealing strong bearish reversal signals when the market is in a downtrend, this allows candlestick investors to take advantage of the strongest short positions. Logic dictates that numerous stocks will be trading lower in a downtrend, but the candlestick investor has the advantage of identifying which stocks are going to have the strongest downtrends during a market downtrend. Take advantage of the information revealed in candlestick signals. They will constantly put the probabilities in your favor. The strong candlestick signals and patterns are clearly described in “High-Profit Candlestick Patterns”.
The market indexes are showing a potential reversal. The important word is potential! The Dow showed a bullish reversal signal after supporting at the same level it supported a few months ago. However, although the NASDAQ and S&P 500 traded positive on Friday, they didn’t form reversal signals. And they did not close above the T line. This makes it important to see what the premarket futures are indicating for the open on Monday. The Ukrainian situation still acts as a cloud over any bullish trading. When markets are in transition mode, learn to be patient for confirming candlestick signals and patterns. The confirmation dramatically improves your probabilities of being in correct trades.This does not deter establishing trades in the strong candlestick signals and patterns.
IMGO is demonstrating a bullish breakout after a series of Doji’s. This is a very strong reversal pattern because of the magnitude of the indecision.CTRN it is providing a strong sell pattern trade. This is adding numerous candlestick trade indications that dramatically improve the probability of not only being in the correct direction but in a strong price move direction. The oil sector remains a strong sector due to oil prices continuing their uptrend, a consequence of a Ukrainian conflict. Oil stocks can be bought on strength on Monday. COP, APA, OXY, EOG. Airlines have been showing bearish patterns. They can be shorted on weakness MondayUAL, DAL, LUV ALK.
February 18th Daily Market Comments
The market downtrend continues to make the bearish J-hook patterns very profitable. Stay predominately short as long as the indexes continue to trade below the T line. The electric vehicle sector is holding up but not going anywhere in this declining market. Evaluate each individual position based upon is it the best place to have your money or are there better situations.