Candlestick analysis provides a very powerful indication of the direction of a trend/market. It also provides good evidence of when there is not a trend in progress. Currently, the market indexes are drifting lower, likely the result of the summer doldrums. Investor sentiment and activity is probably going to be more lethargic this summer with numerous investors wanting to get out and about without co-vid restrictions.
This may indicate a lack of bullish sentiment as the candlestick charts are beginning to indicate. This provides a trading environment that would warrant adding short positions to the portfolio. The Dow closed below the T line, the NASDAQ closed below the T line. This produces much greater probabilities that a downtrend is starting. Join us in the chat rooms each day. Many good trades are revealed by candlestick investors that have experience.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
