and The Candlestick Forum
The Dow and the transportation index are providing the most evidence of basing/reversing. The Dow showing strength at the 50 day moving average support level. The S&P 500 forming a Morning Star signal at the 50 day moving average. Now the final confirmation is required, closes above the T line. It will be important to see how the markets close today.
High probability option trades are the function of knowing the direction of the underlying stock with a high degree of probability. High probability options trades are executed when knowing the direction of the overall market and which candlestick patterns will produce the biggest potential price moves. Currently, with the indexes continuing to trade below the T line, the T line rule makes a high probability assumption the downtrend remains in progress. This allows for identifying which down-trending stock charts have the biggest downside potential. Join us Saturday, April 23 for a full day of comprehensive training on applying the correct option trade with the appropriate candlestick signal or pattern. This process allows the candlestick investor to dramatically improve the probabilities of being in a correct trade at the correct time. Utilizing calls and puts and calls spreads and puts spreads dramatically improve an investor’s capabilities of producing bigger percentage returns with mitigated risk. This is not rocket science! This is merely putting the appropriate trading strategies in place. As long as the market indexes do not reveal candlestick reversal signals, after moving down over the past few weeks, puts spreads becomes the logical trading strategy.
Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join
Good Investing,
Stephen Bigalow
The lack of direction in the market indexes continue to make specific stock/sectors the top criteria. The market remains in a bearish trend as long as the indexes continue to trade below the T line. Although the Dow is trading positive, it is not demonstrating any bullish or bearish conviction, sideways. Analyze each chart on its own merits.
Option trading becomes much more profitable when utilizing candlestick patterns. Option trading strategies can be applied knowing the optimal time to enter a trade and what the trade magnitude will likely be. The current market trend is on a downward trajectory. The Dow had the possibility of trading positive on Thursday but the positive trading early in the day would not have produced a full confirmation the bulls were taking control because the NASDAQ and the S&P 500 opened at the T line and immediately started trading back lower. Utilizing the T line rule, as long as the indexes cannot close above the T line, assume the downtrend remains in progress, and make for much better probabilities of remaining short or buying puts/puts spreads. Candlestick analysis improves the probabilities of being in strong option trades when knowing the general direction of the market as well as pattern price move expectations. Currently, numerous stocks continue to trade below the T line. Some have already had good price movements to the downtrend and appeared to be heading lower. This is where adding puts spread is much more logical than continuing to buy puts at these levels. Join us Saturday, April 23 for a full-day training on simple option trade strategies that can be applied to the correct candlestick signals and patterns. This logical information can greatly improve the probabilities of profitable trades.
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Stock Chat – Thursday 04/15/22
At the end of the webinar, Steve announced his upcoming “Option Strategies with Candlestick Signals” event, which he’ll present on Saturday, April 23rd.
This 4-hour training workshop will provide you with visual perspectives that will improve your investing for the rest of your life.
Click here for more information.
High probability option trades are enhanced by the correct market trend analysis. High probability option trades can be seen in down trending stock positions that have the possibilities of reversing but the downtrend continued when they failed to get back up above the T line. Numerous bearish chart patterns, even though in the oversold condition, reveal the probabilities of continuing lower. These trend conditions allow option traders to move from buying puts to getting better profit probabilities by moving to put spreads. Fortunately, put spreads can be implemented very easily. Most brokerage firms provide easy trade execution of spreads with one click. Join us Saturday, April 23 for a full day training on the appropriate option strategies applied to the appropriate candlestick signals and patterns. Common sense provides much better risk reward factors when using the correct option trade strategy with a corresponding candlestick pattern.
https://www.stephenbigalow.com/ss-options-with-candlestick
Currently the market indexes have failed to close above the T line. The T line actually showed the resistance for the NASDAQ and the S&P 500 today. The Dow, after forming a bullish and golfing signal yesterday right at the 50 day moving average had good prospects of confirming a trend reversal but the late day selling closed the Dow back below the T line, making the prospects of further downside very strong.
Although the Dow is trading positive today, it is currently trading at the lower end of its candle. The NASDAQ and the S&P 500 are still trading below the T line. Remember, that is a very relevant indication of the direction of human nature. Note that numerous down trending stocks that may have shown a possible bounce yesterday are continuing to trade lower today. Short positions should be covered if they are appearing to close above the T line.
Downtrends usually consist of buying in the morning and selling in the afternoon. Be careful, as long as the indexes continue to trade below the T line, assume the downtrend remains in progress. Inflation is still a major concern.
Watch the T line! The market rally appears to be the result of inflation being what was expected, not what the White House put out yesterday as expectations. Numerous stocks have bounced up to the T line. Watch to see how the markets/stocks perform going into the end of the day.
April 20th Daily Market Comments
NFLX took the wind out of the sails in the NASDAQ. Note how numerous stocks traded positive yesterday but failed today at the T line. Numerous dumpling top’s are still in progress. The Dow trading positive while the NASDAQ is trading lower makes having both long and short positions in the portfolio.