The markets showed some consolidation today but no evidence of any change of investor sentiment. The NASDAQ was trading higher while the Dow was trading lower. This usually indicates the current trend is still in progress, merely sector rotation occurring. Knowing what the overall trend is doing allows candlestick investors to pinpoint the strongest signals and patterns occurring during an uptrend. J-hook patterns should be producing high probability/high-profit potential results over the next few trading days. The T line works as a very effective confirmation indicating a J-hook pattern has supported and now heading back up. The advantage of recognizing and utilizing patterns is that they produce much stronger price moves than merely up-trending stock prices.
PLUG is producing a very strong J-hook pattern set up after yesterday’s Doji/hammer signal, that supported right on the T line. OSTK is also producing a high probability J-hook pattern set up. The J-hook pattern provides opportunities to get into strong up trending stocks at the appropriate time after the J-hook pattern has revealed some consolidation and a new wave of buying is about to occur.GRAF produced a cradle pattern, supporting at the 50-day moving average. The same is being witnessed in AUDC. Recognizing strong reversal signals at a major support level is the advantage that candlestick investors have by knowing what investor sentiment is doing at those levels. This information, a candlestick pattern at a level that everybody else is watching, allows for high-profit high probability trades setups. This is the process for putting the probabilities in your favor.
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Good investing,
The Candlestick Forum team
