The up-trending market remains obvious. The indexes consistently trade above the T-line. The Dow has actually formed a J-hook pattern set up off the T-line. This implies wave three is about ready to start, more upside is expected. The advantage of being able to analyze the overall market trend with a high degree of accuracy allows the candlestick investor to pinpoint which stock charts are producing the strongest pattern setups. Currently, J-hook patterns are producing very strong upside potential. The cradle pattern that formed in SHLL produced an uptrend that incorporated a J-hook pattern. Today’s strong move in SHLL today has used those patterns to produce a big frypan bottom breakout pattern. The candlestick investor gains a huge advantage by being able to recognize the reoccurring price moves that are created over and over by human nature. The probabilities of being in the right place at the right time are dramatically improved utilizing candlestick patterns.
TWLO gapped up today, producing a frypan bottom breakout. Many stock prices will move up during an up-trending market. Many will not! But utilizing the information built into pattern setups allows investors not only to be in a bullish move, but participating in bullish moves that will be much stronger than mere up trending stocks in an up trending market. TWLO can be bought on positive trading tomorrow, indicating a frypan bottom breakout. Big profits can be made in both buying the stocks and/or having the optimal entry points for strong moves for option trades.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
