and The Candlestick Forum
Today’s positive trading indicated the 50 day moving average was not going to act as resistance for the NASDAQ, the 200 day moving average is not acting as resistance for the S&P 500. The current uptrend continues provided the indexes do not come back down through today’s open. Keep safety stops in place. The market is in an environment that can drastically change based upon international of events.
What is a Doji candlestick? A Doji represents indecision between the bulls and the bears! What is a Doji candlestick? It is one of the most prolific candlestick reversal signals. The Doji rule – a price will usually move in the direction of how they open after a Doji. Especially if it occurs in the overbought or oversold condition. Today the indexes form Doji’s at observable resistance levels. The Dow formed a Doji/Harami at the 50 day moving average area. The NASDAQ formed a Doji at the 50 day moving average. The S&P 500 formed a Doji at the 200 day moving average. This makes trend analysis very simple. The Doji rule says if the market starts trading lower after today’s Doji’s, a pullback/downtrend is extremely likely. This would also illustrate the fact that the moving average resistance levels were acting as resistance. Knowing what should result after candlestick signals provides a much more accurate trading platform for the candlestick investor. The Doji, as well as the other 12 major signals, indicate when it is time to buy and when it is time to sell. This is nothing more than the graphics of what is occurring in investor sentiment. Join us this Saturday and Sunday, March 26 and 27th for a full 2-day comprehensive training on what the candlestick signals and patterns illustrate is occurring in investor sentiment. Learn to recognize and understand what is occurring at strong candlestick reversal levels. This will benefit your trading for the rest of your life.
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Good Investing,
Stephen Bigalow
Today’s consolidation is not unexpected. Remember when a price moves through a resistance level, as seen in the Dow at the 50 day moving average, it is not unusual to come back and test to see if that resistance level is now going to act as support. Stay long, watch to see how the Dow reacts at the 50 day moving average.
Identifying candlestick buy signals in the indexes logically induces scanning for the strongest candlestick buy signals. The MorningStar signal confirmed a reversal in the Dow and the S&P 500 this past week. When witnessing reversals in the overall market trend, logic dictates closing short positions that are starting to show buy signals and scanning for the strongest candlestick buy signals that will benefit the most during the next uptrending market move. Although the NASDAQ did not produce a reversal signal, the fact that it gapped up above the T line was confirmation the bulls were taking control in all the indexes. Join us this Saturday and Sunday, March 26 and 27th for a full two-day comprehensive training on how to analyze and utilize candlestick signals and patterns successfully. This training not only helps visually recognize reversals in price movements but learning the psychology that created those signals produces a very strong trading perception. You will gain insights that will have major impacts on your trading. Learn how to put all the probabilities in your favor. This is not a difficult analytical process. It is 100% visual combined with the understanding of what created the reversal signals. You will learn how to recognize trade breakout setups that improve your positioning to be in potentially high-profit trades. Whether use candlestick analysis as your primary strategy or you overlay candlestick charts on what ever-existing trading strategy you are currently using, your correct trade ratio will improve dramatically. Join us, you will get much more information than you anticipate.Click here for more info. The market indexes have moved back up to the major moving averages. Watch to see what occurs at these levels to see if this is merely a strong bounce in a downtrend or whether bullish sentiment has taken control.
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Stock Chat – Thursday 03/17/22
Options trades at candlestick reversals produce much greater risk/reward factors. Option trades candlestick reversals allow investors to enter option trades at low intrinsic values and without excessive premiums built into the option prices. Candlestick reversals illustrate the change of investor sentiment. This allows the candlestick investor to immediately identify trade reversals that will usually expand option prices rapidly. Having the ability to recognize when investor sentiment is just starting to change, based upon candlestick signals, allows for entering option prices when the general public has not yet decided to buy. This produces a double benefit. Being able to buy options at a cheap price and benefiting from the option premiums expands when investor sentiment continues to gain confidence.
The Dow formed a MorningStar signal that closed above the T line. This was strong evidence there had been a change of investor sentiment. Although the NASDAQ did not show a reversal signal, the fact that it gapped up above the T line the next day was additional confirmation that investor sentiment had turned bullish in conjunction with bullish confirmation in the Dow. Numerous MorningStar signals have formed. Probabilities say that it is more beneficial to buy reversal signals based upon the expected results observed by Japanese rice traders over hundreds of years versus merely buying stocks that had upward movement but not a confirmed candlestick reversal signal. Go with the probabilities! The signals have proven results. Join us Saturday, March 26 and 27th for a two-day comprehensive training on identifying the signals and patterns and understanding the logic that produced the signals and patterns. This combination allows you to analyze market/price movements with the same expertise as an investor with 50 years of experience. You will get more information than you anticipate. Click here for more information.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
Stephen Bigalow
After the initial profit-taking this morning, the bullish sentiment continued. The longer the indexes remain above the T line, the more confidence will be building back up in bullish sentiment. Long positions can be added, any short positions remaining should have very compelling bearish chart patterns. Unless there is a dramatic event that reverses investor sentiment, which with these world events, that can be likely, anticipate bullish sentiment is prevailing.
The Dow forming a MorningStar signal yesterday with a close above the T line provided the prospects that a bullish reversal could be ready to start, based upon how the markets opened this morning. Obviously, the bulls are taking back control. The S&P 500 and the NASDAQ also trading back up above the T line. This is bullish confirmation, however watch to see if the Fed meeting provides any surprises.
Knowing the psychology of the candlestick patterns is a very powerful element of investors’ trading platforms. The psychology of a candlestick pattern is that information that reveals why that pattern was formed. Investor sentiment is what moves prices! Candlestick signals and patterns are what produce the visual indications that a trend is reversing. Add high probability trend indicators such as the T line, you gain a very powerful combination. The market downtrend remains confirmed by no closes above the T line in the indexes. This greatly reduces the emotional whipsaws that might take an investor out of a good existing trade. Join us Saturday and Sunday, March 26 and 27th, for full two-day training on candlestick analysis. The information built into this training will dramatically change an investor’s perspective of what moves prices. The most consistent indicator for the past few centuries of trend analysis is human nature.
Horseradish marketing – H.J. Heinz built a successful business by putting his high-quality horseradish in clear bottles so customers could see it was not filled with sawdust. He also allowed potential customers to taste it. This is what we would like to do with candlestick analysis. If you are not a member of the candlestick forum, join us for a two-week free trial. This allows you to attend the chat rooms that are open all day, as well as receive suggested stock picks each evening, attend the Monday night and Thursday night training as well as the special members training in the evenings. Try it! This is good quality stuff.
Numerous down-trending stocks continue to produce good short trade profits. This is based upon a combination of sell signals and closes below the T line, now followed up with bearish candlestick patterns. You can learn to identify the high probability trade directions using common sense candlestick signals and pattern combinations. This is called comfort trading, knowing the probabilities are in your favor when all the confirming indicators remain in your direction.
Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join
Good Investing,
Stephen Bigalow
March 23rd Daily Market Comments
Although the market indexes are above the T line, the nature of the market is still relatively indecisive. This makes the individual stock chart analysis the top priority. The T line remains the ultimate trend factor.