Candlestick trend analysis makes assessing the direction of a trend very easy. Last week, the indexes showed a potential bearish reversal, bearish candlestick signals. However, the NASDAQ, although showing a very signal, did not close below the T line. Friday’s positive trading all the way back up through the open of Thursday’s trading negated the sell signal, revealing continued bullish strength. A major benefit of the information built into candlestick chart graphics is indicating with a high degree of probability the direction of the market indexes and also revealing when those signals are not confirming. This is as important information as recognizing when a reversal signal is confirming.AMZN, AAPL, NFLX are all reviewing strengths. These stocks being the well-followed stocks reveal there is a lack of bearish sentiment in the markets, confirming what the indexes are revealing.
Candlestick analysis is simply a common sense trend analysis put into a graphic depiction. As experienced in our daily chat rooms, numerous profitable trades are recognized by a good number of candlestick investors, consistently supplying a good supply of profitable trades.
