August 1st Market Direction

The best trade setups are based on human nature. The best trades setups not only detect a high probability trend analysis but also producing a very strong price move in that new trend. Currently the market indexes have moved positive based upon J-hook patterns. However, an important level to be breached was the recent high of June 1. If the indexes could trade above that level, which currently only the NASDAQ has done so, that would indicate the persistent downtrend of the markets would now have a new dynamic. The bulls had stepped up enough to show the bearish sentiment had diminished. That will be why it is important to see if the indexes can move up or stay up above the last peak of June 1. The J-hook pattern in the indexes also produce good J-hook patterns in individual stock prices. The candlestick investor can take advantage of this information. The bobble breakout is a more enhanced probability of producing a strong profit potential because of its establishment based upon moving averages everybody else is watching. When you learn the logic built into candlestick charts, you greatly improve your analytical abilities, not having to depend on anybody else’s prognosis or recommendations. Join us in the candlestick forum chat rooms each day. You will be exposed to numerous good trades set ups, whether you’re a daytrader, swing trader, or long-term investor.


Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow