Archives for May 2022

Candlestick trade setups become much more effective when knowing what the overall market trend is doing. Candlestick trade setups are based upon what occurs in human nature time after time. Learning the strong candlestick signals and patterns allows an investor to participate in the high probability trades. The uptrend in the market indexes remains in progress but with the expectation of potential profit-taking back to the T line. This knowledge allows an investor to enter trades or hold off from entering trades based on how the indexes open tomorrow. It’s this evaluation that allows for entering high-profit trades at the appropriate times. Identifying the strong pattern breakouts allows for entering trades that will likely have strong price movements. You do not have to be a sophisticated technical analyst to utilize candlestick patterns successfully.

Market trend analysis becomes much more accurate using candlestick indicators. Market trend analysis is based upon what is occurring in investor sentiment. Candlestick analysis is the graphic depiction of investor sentiment. The market indexes have been in a downtrend with bullish signal bounces along the way. However, simple candlestick indicators allow an investor to see whether that reversal is being confirmed or if the downtrend remains in progress. This week, the Dow has produced candlestick reversal signals and confirmed indications the bulls have taken control. This is a combination of candlestick signals with price confirming above the T line and witnessing the 3T-line now trading up above the T line. Knowing the little nuances that make for accurate market trend analysis allows an investor to participate in individual stock trades that have high profit/high probability results. The lithium mining companies are producing good consistent uptrends, even though the market is just recently reversed. Also, there are high probability breakout/daytrade set ups that are greatly enhanced when knowing the direction of the overall market. Join us tonight for our Thursday night session identifying the high probability day trades.

Chat session tonight at 8 PM ET. Click here to register.

Good Investing,

Stephen Bigalow

The market trend is in a transition stage. Today’s positive trading in the indexes provided the possibility of a market trend reversal. However, the full confirmation of a change of investor sentiment requires witnessing candlestick reversal signals in the indexes and a close above the T line. As illustrated, potential reversals have occurred over the past few weeks with candlestick buy signals and closes above the T line, but they did not confirm the signal the next day, closing the indexes back below the T line. This is very important for analyzing what is occurring in investor sentiment. These market conditions allow for analyzing individual chart patterns to recognize which down trending stocks remain in progress and which stocks have produced bullish confirmation. This is what puts the probabilities greatly in the candlestick investors favor.

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow