High probability trades are easily identified using candlestick signal results. A common question is when you have so many good bullish reversal signals on any given day, how do you pick the best trades. High probability trades are based upon candlestick signal and pattern expectations. The inverted hammer signal provides a 95% or greater probability an uptrend is in progress if it opens positive and trades positive after the inverted hammer signal. Pattern breakouts also provides two major benefits. First, a high probability of the direction of the next move and secondly, a strong move is expected. This allows the candlestick investor to constantly cultivate their portfolio positions to be in the best possible/most profitable trade set ups. This process allows the candlestick investor to constantly improve the probabilities of profitable trades. Join us Saturday, June 25 for a full day training on daytrading set ups that produce good expected results. This is not only good for daytrading but also for fine-tuning swing trading entries. Join us, you will get a lot more information than you expect
Archives for June 2022
June 21st Daily Market Comments
The market indexes are in the oversold area showing some bullish strength. It will be important to see where the indexes close today, indicating merely a bounce in a downtrend or a potential reversal. The NASDAQ is currently nudging the T-line, the other indexes have more upside to get to the T-line. The 3T-line becomes an important factor. Adding any long positions in this area requires bullish follow-through. Short positions should start to be covered if they don’t show weakness going into the end of the day.
June 17th Daily Market Comments
A reminder, a downtrend will usually see early-morning buying but then continued selling later in the day. Do not jump after long positions in those conditions unless there is a very viable bullish signal or pattern. Continue to stay predominately short until there is a definite reversal signal in the market indexes.
June 15th Daily Market Comemnts
A bounce? Not unexpected with the indexes moving excessively below the T line. Obviously anticipation of the Fed announcement today. After the fed announcement, watch to see what the market action is from there, being when the announcement is out-of-the-way, all the remaining factors for analyzing/deciding whether to be buying or selling will be back to the existing factors, inflation, five dollars a gallon gas, etc. Note that the Dow bounced back up to the 3T line and is currently selling off from that level. Keep in mind, the downtrend remains in progress until there is a candlestick buy signal.
June 13th Daily Market Comments
June 10th Daily Market Comments
Inflation! Did the smart money anticipate today’s CPI report and yesterday’s trading? Who knows, but as a candlestick investor all we have to do is analyze the fact that investor sentiment broke down through the sideways trading range of the past two weeks. The close below the T line yesterday in the indexes revealed the probabilities of a new market trend. Any long positions require even more compelling reasons to stay long today. Be predominately short.
June 22nd Daily Market Comments
The market indexes continue to trade in a basing mode, not yet indicating if a bullish reversal has confirmed. The T line continues to be a relevant indicator. The J-hook patterns are producing good profit trades. The scoop pattern is also working. Until the markets show a definite trend, be prepared to close out positions quickly if they are not working.