Archives for May 2023

The high profit candlestick patterns become more effective in an indecisive trading market. The high profit candlestick patterns are the buildup of bullish or bearish sentiment, demonstrating less reliance on the overall market trend. Although the markets had a strong day on Friday, the Dow did not perform a reversal signal, merely a bullish day. The NASDAQ had a much stronger sentiment based upon a MorningStar signal that pushed back up to the resistance level. However, today’s trading was an indecisive Doji-type day. The transportation index traded lower. The S&P 500 traded indecisively flat. The NASDAQ is the only index that appears like it could breakout into new territory, out of the sideways trading range. Until it does, the sideways trading mode of the indexes make having both long and short positions in the trading portfolio. Having the ability to analyze the overall market trend allows for scanning for the high profit candlestick patterns more effectively. There are 9500 trading entities. On any given day, simple candlestick scanning techniques will identify a number of strong bullish trade set ups as well as a number of strong bearish trade setups. Using this information allows the candlestick investor to always have a good supply of potentially profitable trades.

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Stephen Bigalow

High-profit short positions are easily identified using simple candlestick scanning techniques. High-profit short positions are more likely to be identified when we can analyze the overall market direction with much more accuracy. The evening star signals in the indexes at obvious resistance levels produce high probabilities the sellers are taking control. The fear of another bank crisis is overshadowing the markets. The Fed announcements implied more rate hikes are likely. Lower oil prices indicate a slowdown of all economies. Candlestick charts provide much more clarity as to what the overall investor sentiment thinks about the economic environment. Candlestick investors can see it more clearly, witnessing candlestick signals at obvious support and resistance levels.

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Good investing,

Stephen Bigalow