and The Candlestick Forum
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Stock Chat – Thursday 03/31/22
Identifying breakouts is much more effective when utilizing the information built into candlestick charts. Identifying breakouts is utilizing the signals and patterns that illustrate a major move coming in investor sentiment. The first analysis each day is the direction of the overall markets. Gap ups in the overbought condition have been identified by Japanese rice traders over hundreds of years as being the alert to start watching for a sell reversal. Where do most people buy? They buy exuberantly at the top! Rule of thumb, witnessing a price gap up in the overbought condition, start looking for candlestick sell signals. There are very logical selling indicators built into candlestick graphics. A close below the previous day open in an overbought condition is a high probability indication of the sellers taking control. That was witnessed in the NASDAQ and the S&P 500 yesterday. The bearish Doji Harami that formed in the Dow produced the alert that if prices opened lower today, the Dow is likely to come back to at least the 200-day moving average.
Knowing the direction of the market allows the candlestick investor to identify the strongest sell signals.RH revealed a bearish best friend signal failure at the 50 days moving average. Utilizing the information built into candlestick signals allows the candlestick investor to gain a huge advantage of knowing not only the direction of a price move with a high degree of probability but also identifying the strongest down moves. Candlestick signals reveal strong breakouts of investor sentiment either in a strong individual candlestick signal or a buildup of a pattern. Join us this evening in our free Thursday night chat session to learn what price moves usually occur after a breakout signal. This is information that you will utilize for the rest of your investment career. Also, utilize our two-week free trial to our chat room that is open all day during trading hours, as well as our stock recommendations that produce a learning process of why specific candlestick signals and patterns work well. Click here to register.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
Stephen Bigalow
Today’s consolidation in the market indexes do not show any major change of investor sentiment. The indexes continue to trade above the T line as well as the 3T line. The indexes are in the overbought condition but still in an uptrend. Keep safety stops in place.
Be careful, although the market indexes are trading positive, they have gapped up in the overbought condition. It would not be unusual to see the Dow, after gapping up above the 200 day moving average, come back and test it.
Continued consolidation even though the Dow is trading higher, the NASDAQ is trading slightly lower. There are numerous uptrending stocks showing profit-taking today. These market conditions are still producing good Long’s and good shorts.
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 03/24/22
Candlestick patterns are greatly enhanced when knowing the overall direction of the general market. Today’s positive trading produce further evidence the 50 day moving average was going to act as a support level in the Dow, after a couple days of consolidation at that level. Additional bullish sentiment was illustrated in the NASDAQ, opening positive after a potential candlestick reversal signal. The upward bias of the market makes candlestick patterns more productive. Numerous fry pan bottoms and J-hook patterns are still producing good upside profitability. Knowing what should the expected based upon the visual identification of pattern set ups allows the candlestick investor to participate in profitable trades with a high degree of probability.
The belt holds signal in HYZN creates a much greater prospect of a bullish uptrend continuing with greater speed because sellers have been eliminated. That is what a belt holds signal indicates. This produces better upside prospects because there are less sellers now in the way. Candlestick signals are the creation of investor sentiment producing the same results time after time. The kicker signal is the strongest individual candlestick signal. LOGI can be bought on positive trading tomorrow based upon kicker signal reversal and a close above the 50 day moving average. Learn how to identify a high probability signal and pattern ramifications based upon the results the Japanese rice traders have identified over the last 400 years. Join us this weekend. The candlestick forum two day training is a comprehensive training that will completely alter an investors perspective, learning where the high probability trades set ups are occurring which greatly reduces investor emotions.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
Stephen Bigalow
The market indexes are still illustrating very indecisive investment sentiment. Due to a glitch in the scanning software last night there was not any pics. However, today’s trading would not have provided any good confirmation.
March 31st Daily Market Comments
After gapping up in the overbought area, yesterday’s trading brought the NASDAQ and the S&P 500 back down below the open of the gap up. This is usually a strong sell indicator. The Harami in the Dow indicated the likely pullback on weakness today, back to test the 200 day moving average. Short positions are working better.