The graphics of the candlestick charts provide much more clarity for analyzing an overall trend but even more defining, the nature of a trend. The graphics illustrate that the current uptrend is still a very indecisive oscillating movement. One day trading up, the next day trading lower, but the overall trend can be identified as an uptrend as long as it continues to trade above the T line. Today the Dow traded lower while the NASDAQ trading just slightly lower but with an indecisive Doji type formation. This clearly reveals there has not been a major change of investor sentiment. These market conditions rely much more heavily on utilizing the T-line as the ultimate trend indicator. The major benefit of candlestick analysis is being able to identify candlestick patterns that are going to produce high probability/high-profit results. This analysis also allows an option trader’s to put on the best option strategy for specific candlestick patterns. Join us this Saturday, May 2, for a full day training on how to utilize the correct option strategy with specific candlestick patterns.www.stephenbigalow.com/options-strategies.
The Fry Pan bottom patterns are working very well in these market conditions. The Fry Pan Bottom pattern is very easy to identify. It allows an investor to enter a trade right at the optimal entry point. The Fry Pan bottom has very strong price move expectations. This creates two huge benefits for a candlestick investor. The direction of the next price move can be identified with a high degree of probability and the result of that price move is a very strong profit trade.
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Good investing,
The Candlestick Forum team.
