Archives for December 2022

Accurate trend analysis is enhanced by knowing the actual candlestick signals. Although the indexes produced a joyous trading day on Monday, it was not a candlestick reversal signal. This is very important for accurate trend analysis. A bullish trading day does not necessarily mean the bulls are taking control. If Monday’s trading had been a bullish signal, logic tells us that the Japanese rice traders, with 400 years of observations, would have identified it and described why it was a reversal signal. Because it was not recognized as a reversal signal, the inference has to be that it is not a change of investor sentiment. Otherwise, the Japanese rice traders would have indicated the relevance of that type of formation. As the markets illustrated, the effects of Powells’ comments are now sinking in. He is trying to create a slowdown in the economy. This does not make for good bullish trade setups. Another strong indicator of investor sentiment is when simple candlestick scanning techniques reveal much better short trades than long trades, it can be implied that the bears have taken control. However, as illustrated in the CARG chart, a recognized candlestick pattern still has the prospects of producing good profits in a direction that might be opposite of what the overall market trend is performing. Join us Saturday, December 17 for a full day training on recognizing, understanding, and applying successful trading strategies utilizing candlestick patterns.

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

Good Investing,

Stephen Bigalow

You gain much more accurate trend analysis visualization when using candlestick signals and patterns. Accurate trend analysis incorporates the nature of investor sentiment and its relationship to the T line. Today’s positive trading brought the indexes back up above the T line but did so without a candlestick signal. The sideways mode of the market indexes indicates investor sentiment waiting to see what the results are of the CPI numbers. Today’s positive trading was not enough information to accurately analyze which direction investor sentiment will move after the CPI numbers come out tomorrow morning. However, the premarket futures will allow for the confirmation of the likely direction of the overall market. But candlestick patterns allow investors to produce high probability trade expectations. The fry pan bottom, followed by a J-hook pattern, is a prevalent bullish pattern in these market conditions. Keep in mind investor sentiment works the same way time after time. That is why recognizing candlestick patterns produce such high probability expected results. Join us Saturday, December 17, for a full day of training on the high-profit candlestick pattern setups. This training not only allows you to recognize reoccurring pattern development but also provides insights into what moves investor sentiment, allowing an investor to gain much better control of their emotions and establish trades that dramatically improve probabilities of being in a profitable trade.

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

Good Investing,

Stephen Bigalow

Although the market indexes traded positively today, they did not do so with a compelling candle formation. The Doji’s illustrated some indecisiveness even though the indexes were trading positively. Also, the T line remains a very relevant indicator. As long as the indexes continue to trade below the T-line, assume bullish sentiment is not in control. Tomorrow’s PPI numbers should also produce a reaction in the market trend. The best friend signals have produced some good profitable trades, as demonstrated in the electric vehicle sector,LI, NIO and XPEV. The J-hook patterns continue to produce consistent profits. The kicker signal in INFN appears to be starting wave three of a J-hook pattern. Join us this Saturday for a Mini spotlight training on identifying the J-hook pattern setups that produce the highest potential profits. These training sessions are inexpensive and provide an immense amount of information for visually recognizing the potential strong price moves.