When the Dow is trading lower and the NASDAQ is trading higher, it indicates there has not been a change of investor sentiment, merely a shifting of funds from sector to sector. This is producing numerous very strong candlestick price patterns. The fry pan bottom is still a very potent profit potential trade set up. The J-hook patterns are producing very good profitability. Knowing which pattern breakouts are going to produce the biggest price moves creates a huge advantage for the candlestick investor. It allows for the constant cultivation of a trading account to keep the strongest positions in place. The slow steady uptrend of the indexes allow for the strong candlestick patterns to perform without the fear of any selling pressure in the overall market.
There are a number of fry pan bottom breakout potential’s. TMHC, DBI, TCDA and PE are all setting up to be high profit trades upon positive trading tomorrow. AN is a classic pattern that is indicating a new J-hook pattern wave after the fry pan bottom strong price move. The candlestick investor has the benefit of being able to identify where a dramatic price move is about to occur. Because the candlestick signals are created by the accumulative knowledge of everybody buying and selling at a specific support level, charts that are forming bullish signals at major support levels such as the 50 day moving average improve the potential of being in the right trend at the right time, GRAF with a MorningStar signal last week, AUDC bouncing off the 50 day moving average with a MorningStar signal also. Human nature works the same way time after time. Candlestick analysis merely exploits that information.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
