Powerful trade setups become much more viable when able to accurately assess the direction of the overall markets. Today’s selling confirmed some candlestick sell signals of last week. The bearish hanging man/Harami formed in the indexes on Thursday was confirmed today with closes below the T line. The S&P 500 was more convincing that the sellers were taking control by forming a bearish signal at the 200-day moving average, a potential resistance level that everybody was watching. Analyzing that the sellers are starting to take control allows the candlestick investor to take advantage of powerful trade setups. Several bearish flutter kicker signals were confirmed today on the lower opens. A major advantage of the flutter kicker signal is the alert, the gap down Doji below the opening of the previous bullish candle. This makes trade entry a relatively high probability execution. The Doji rule makes entering a short trade a high probability expected result. Candlestick patterns are identified because of their reoccurring expected results. Join us Saturday, December 10, for a Mini spotlight training on the J-hook pattern. Learn what confirming indicators improve the probabilities of a strong J-hook pattern result. These – two-hour training provides an immense amount of information. Still, more importantly, it allows the learning process to concentrate on the elements that make the J-hook pattern potentially highly profitable.
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Good Investing,
Stephen Bigalow
December 6th Daily Market Comments
The market indexes closing below the T line yesterday made be in prepared for more selling. Any long positions that were not showing strength, especially in the overbought area, should have been closed. Numerous strong short positions could be established.