Archives for October 2022

Reading candlestick charts produces a huge advantage for investors. Reading candlestick charts visually identifies high probability trade set ups. The first step is knowing with relatively good accuracy the general direction of the overall market trend. The next process is identifying the strongest candlestick signals and the patterns that may be developing based upon the information produced by the signals. The current market trend is in a bearish mode with the bearish J-hook pattern confirming. As illustrated in the NASDAQ and S&P 500, the bearish J-hook pattern is being confirmed with a bearish best friend signal, one of your strongest candlestick signals. The visual aspects of candlestick charts visually identifies high probability trade expectations. The current downtrend is being instigated by high inflation, raising the interest rates, and the administration’s energy policy that is keeping gas and heating oil prices extremely high. The lack of any policy changes is resulting in any lack of change of investor sentiment. There is great anxiety in the majority of investors. But as a candlestick investor, being able to identify when the downtrend was starting and being able to accurately assess the downtrend remaining in progress, there is no anxiety. Being in cash or in ishort positions produces a comfortable trading mode. How long will the downtrend persist? Until there is a strong candlestick bullish signal and a close above the T line. When you grab for the fallen knife? Reading candlestick charts allows for identifying when the downtrend has ended. Join us in learning the common sense logic incorporated into candlestick charts. Try our two week free trial. What do you have to lose? You will gain a lot more valuable insights into investing than you expect. Email abraham@candlestickforum.com to take advantage of the learning information in our daily chat rooms.

Candlestick charts explained provided an immense amount of high-probability information. Candlestick charts explained reveal reoccurring signals and patterns that dramatically improve price movement analysis. The current bullish movement in the indexes have the implication of merely a bounce in a downtrend. Why? Because there is not a candlestick reversal signal, merely bullish trading. The lack of a candlestick bullish reversal signal implies much less magnitude of movement. Identifying actual reversal signals as illustrated in numerous oil stocks provides much stronger probabilities that a sustained reversal has occurred. The signals are very effective on their own. However, identifying additional confirmations as a candlestick signal is formed greatly improves the probabilities of being in a correct trade. Join us tonight at 8 PM ET as we will be illustrating how to identify the strongest reversal signals utilizing MetaStock scanning software. You will greatly improve your trading abilities when recognizing and utilizing the logic built into candlestick analysis.

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

Good Investing,

Stephen Bigalow

A strong trend indicator is one that works an extremely high percentage of the time. A strong trend indicator that works in conjunction with candlestick signals is the T line. The T line produces a very high probability factor. You do not have to take my word for it! Put the eight exponential moving average on your candlestick chart and notice how often it acts as a support level in an uptrend or a resistance level in a downtrend. You can easily back test it. The most powerful element to this strong trend indicator is the number of times prices reverse right at the T line. The reason this is relevant is that nobody has the T line on their charts. It is not like everybody is waiting to see what it does at the T line. The T line becomes extremely effective for keeping investors from being whipsawed in and out of trades. Here is one of the most powerful statements for trend analysis. If candlestick signals are the graphic depiction of investor sentiment and the T line acts as a natural support and resistance level of human nature, a Fibonacci characteristic, adding the two together produces an extremely powerful trend analysis combinations. Join us on the www.candlestickforum.com. You will see a dramatic improvement of your trading analysis.

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

Good Investing,

Stephen Bigalow