There is a very strong compelling indicator using candlestick analysis! A close above or below the T-line. As long as a trend does not close below the T line, the probabilities are extremely strong an uptrend remains in progress. This is a very important trend analysis factor. The Dow opened lower today, after the prospects of profit-taking over the past two weeks. It can be observed that there was weakness in the Dow trend, consolidating back to the T-line. Today’s lower open indicated more profit-taking and the possibility of the markets trading lower. However, the Dow closed above the T line. The NASDAQ, S&P 500, and the transportation index all closed above the T-line. The NASDAQ formed a very strong bullish day, providing additional evidence the uptrend was remaining in progress. This allows the candlestick investor to orient their portfolio positions based upon having much higher probabilities the uptrend of the markets are still in progress.
The ability to assess the overall market trend with much more accuracy using candlestick analysis provides the trading strategy to look for the individual stock charts that are producing the strongest upside potential, candlestick pattern breakouts. This has been illustrated by recommendations over the past few weeks that have performed very well when a breakout has occurred. Today FSLY broke out of a cradle pattern, producing an extremely high probability of much more upside. The same pattern, the cradle pattern, has been exhibited in our recent recommendation on SHLL. Currently, SHLL is in the process of producing a J-hook pattern set up, producing additional evidence a strong bullish trend is in progress. The candlestick investor benefits from knowing what the results should be based upon strong pattern breakouts. This produces the trading platform of having positions in high probability profitable trades. Not only profitable trades, but inordinately strong price moves even in a slow up-trending market.
No Chat Session Tonight.
Good investing,
The Candlestick Forum team.
