The T line is a major confirming indicator for a price trend. As seen in the market indexes, each index has traded in decisively for the past few weeks, up one day, down slightly the next day, forming Doji type days. But this indecisive trading has one confirming factor, each index is consistently traded above the T line. The T line acts like a natural support and resistance level of human nature. This factor, combined with the candlestick graphics of human nature, provides an extremely powerful and accurate trend analysis. It makes trend analysis very simple. As long as a trading entity, whether an individual stock or an index, trades above the T line, it has to be assumed the uptrend remains in progress. Knowing this probability, when analyzing the overall market trends are staying above the T line, the candlestick investor can aggressively utilize candlestick pattern breakouts, knowing that there is not any major overall change of the general market direction.
Combining candlestick signals and patterns with the T line dramatically improve the probabilities of analyzing whether a trend is still in progress or whether it is time to come out of a trade. Numerous charts are showing very strong profitable trade set ups while other charts are demonstrating what initially looked like a strong trade has now lost vigor. Analyzing individual commodities also pinpoints which sectors should be acting the strongest. Crude oil has had a steady uptrend and showed good strength today. This makes analyzing oil stock charts very logical.
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Good Investing,
The Candlestick Forum Team
