and The Candlestick Forum
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Market reversal? Today the indexes produced MorningStar signals, one of the 12 major reversal signals. The market reversal still requires confirmation with positive trading tomorrow. Positive trading would confirm the MorningStar signal and indicate the T line is not going to act as resistance anymore. However, it will be very important to see what the premarket futures reveal as far as a reversal is concerned. A lower open would merely indicate today’s positive trading was a bounce during a downtrend. There remains some strong sectors in these market conditions. Crude oil appears like it will be trying to break out of a wedge formation. There are numerous J-hook patterns forming in oil stocks. It is this type of accumulative analysis that allows the candlestick investor to be in high probability trades a good percentage of the time. Join us this Saturday for a free multi-speaker event. These events allow investors to view numerous trading strategies all at one time. And investor can use these sessions to see which trading strategy or which combination of trading strategies best fit their trading nature. Join us, at 10 o’clock Saturday, it is good free information. Click here to register.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
Stephen Bigalow
Observation – it is not unusual to see the early trading go opposite of the current trend. As long as the indexes continue to trade below the T line, assume the downtrend is in progress.
Being the worst investor in the world before candlesticks came along, it is a very gratifying feeling to be in the right direction at the right time. The short trades continue to work, especially the dumpling top’s. Stay short until you see evidence of buy signals in the market indexes.
Option trade high probability entry strategies are greatly enhanced when using candlestick analysis. Option trade high probability entry strategies are the combination of candlestick signals confirming pattern breakouts. The overall market trend is still bearish although it traded positive today. The downtrend remains in progress as long as the indexes continue to close below the T line. However, it is not unusual to see a bounce back up to the T line during a downtrend. This allows investors to be prepared for high probability entries based upon specific bullish or bearish patterns developing. Witnessing the premarket futures indicating a lower open tomorrow would be enhanced evidence dumpling top patterns would still be in progress. At these levels, buying puts spreads is much more feasible than buying puts outright. A positive open would indicate the probabilities of a few days bounce back up to the T line levels. This also allows for high probability option trade entries. Utilizing candlestick analysis allows an investor to get much more clarity as to which direction a price/market trend will move based upon the expected results of candlestick signals and patterns.
Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join
Good Investing,
Stephen Bigalow
The market trend analysis remain simple, the downtrend is in progress as long as the indexes continue to trade below the T line. However, anticipate some sideways/slightly downward trajectory in the markets, letting the T line catch up. The stochastics are still showing further downside weakness potential. Stay predominately short.
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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 04/21/22
The best option trades are produced by candlestick common sense. The best option trades are produced by candlestick signals confirming candlestick patterns. As illustrated in our recommendation to short SPOT, this successful trade was based upon knowing what to look for coming out of a dumpling top candlestick pattern. Expecting a strong sell signal would confirm a strong downtrend confirmation of the dumpling top. Yesterday, witnessing a bearish kicker signal was a strong sell signal that would instigate a powerful down move based upon a strong downtrend coming out of a dumpling top pattern. Visually recognizing these candlestick indications allow the investor to be not only in high probability trades setups but also in very strong profit trades. Specific signals allow for the identification of a downtrend starting, allowing for profitable put trades to be put in place, followed by signals occurring near a pattern breakout would allow for enhancing profitability by putting on additional put spread trades. This modification of the trading strategy reduces the risk after a price has already moved extensively but still participates in further downside movement with logical leveraged option trades. Join us Saturday, April 23 for a full-day training on how to use the appropriate option strategies for the appropriate candlestick signals and patterns. You will gain valuable insights that will allow you to trade much more successfully.
Chat session tonight at 8 PM ET with Guest Speaker Erick Wilkinson. Click here to register.
Good Investing,
Stephen Bigalow
The Dow, transportation index, and the S&P 500 are showing good bullish confirmation. The NASDAQ, although trading higher, is trading below where it opened after resisting at the 50 day moving average this is still producing good bullish charts as well as good bearish charts. Numerous high tech stocks continue to show weakness. Have both long and short positions in the portfolio.
April 28th Daily Market Comments
The economic numbers much more negative than expectations. The indexes already trading below the T line. Nothing yet to imply bullish sentiment coming back into this market. Stay short. Any long positions being considered should have very compelling bullish chart patterns.