Archives for February 2023

Option trade setups are sipmle to be identified when accurately analyzing the market trend with candlestick analysis. Option trade setups utilize the high profit/high probability candlestick very signals and patterns. The same simple logic applied to the analysis of a candlestick chart can then be applied to the appropriate option strategy. The current market direction is bearish, as illustrated by the indexes continuing to trade below the T line. Although the markets traded bullish on the open today, the candlestick investor has the ability/patience to wait to see what the markets will do by the end of the day. The assumption remains that the downtrend is still in progress until you see a bullish reversal signal and a close above the T line. The strong candlestick sell signals, such as bearish best friend signals and bearish kicker signals, provide high-probability trades as well as high-profit trades. The logic is simple! If the market is in a downtrend and strong bearish signals and patterns can be identified, the probabilities are significantly in our favor that the bearish trades will work with a high degree of probability. Join us this Saturday, March 4, for a Mini spotlight training on utilizing the appropriate option trade strategies at the appropriate times of a bearish downtrend. You will gain some valuable insights into the basic logic of candlestick analysis.

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

Good Investing,

Stephen Bigalow

Market trend analysis is greatly simplified using candlestick signals. The market trend analysis can be refined for short-term trading as well as long-term investment holds. Although the Dow formed a hammered/Doji today, it still trades below the T line. However, the distance between the trading and the T line creates the probabilities that positive trading tomorrow is likely to bring the Dow back up to test the T line, a bounce. The NASDAQ and S&P 500 did a hammer/Doji’s off the major support levels but not quite yet in the oversold area. This puts the Doji rule into effect. The markets are likely to trade in the direction of how they open after today’s Doji’s/hammers. Positive trading would imply a bounce back up to the T line. A lower open would indicate the downtrend was still in progress based upon the Dow reaching the lower support level of the wedge formation and the NASDAQ and S&P 500 forming bearish flutter kicker signals, strong sell signals. Knowing how to use the information built into individual candlestick signals allow traders to get in and out of positions at the most appropriate times.SHOP illustrates the possibility of support at the 50-day moving average. But the Doji rule will indicate how it will trade based upon how it opens tomorrow. This type of candlestick analysis allows a trader to maximize their profitability. Learn the logic built into candlestick analysis.

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

Good Investing,

Stephen Bigalow

Option strategies with candlestick analysis dramatically simplify the analytical process. Options strategies, like candlestick analysis, allow for the appropriate trading strategy without having to do an extensive amount of calculation every evening. The candlestick forum will provide option strategy training over the next few weeks. The strong candlestick signals and patterns allow investors to take advantage of the most decisive price moves during a market trend. As illustrated by the wedge formation, the Dow has breached the lower support level of the wedge pattern, implying a strong downtrend will likely proceed. This evidence of weakness was enhanced by witnessing strong sell signals and trading below the T line in the NASDAQ and S&P 500. The markets have a sense of forecasting problems in the overall world events. A Russian/China collaboration is causing worries in the investment area, and the prospects of the world economies slowing down. Fortunately, you do not have to be an in-depth analyst of what might occur worldwide. The candlestick charts reveal what everybody else’s analysis is producing regarding buying and selling decisions.

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

Good Investing,

Stephen Bigalow