Trading candlestick patterns have inherent advantage. The expectation is that the profits will be much greater as a pattern breakout performs versus merely an uptrending stock in an uptrend. Additionally, because there is already investor sentiment building up to create the pattern, they will continue to work or at least remain stable on days where there is overall selling in the general market. Today is a possible hard reversal day in the Dow, unless it comes back up toward the top end of the trading range before the end of the day. Although the Dow is selling off reasonably hard, the S&P 500 is not showing any decisive selling and the NASDAQ is still trading positive. This implies the Dow may not be the leader as far as today’s trend analysis.
April 25th Daily Market Comments
Trading candlestick patterns have inherent advantage. The expectation is that the profits will be much greater as a pattern breakout performs versus merely an uptrending stock in an uptrend. Additionally, because there is already investor sentiment building up to create the pattern, they will continue to work or at least remain stable on days where there is overall selling in the general market. Today is a possible hard reversal day in the Dow, unless it comes back up toward the top end of the trading range before the end of the day. Although the Dow is selling off reasonably hard, the S&P 500 is not showing any decisive selling and the NASDAQ is still trading positive. This implies the Dow may not be the leader as far as today’s trend analysis.