The Dow traded lower while the NASDAQ traded higher, indicating there was no major change of investor sentiment in the current market trend. This merely indicates rotation of sectors. Gold has started to trade higher again, making the gold stocks a viable sector. LABU is a good indicator to illustrate the biotech sector is starting to show strength. The major advantage of candlestick analysis is allowing an investor to identify where bullish funds are moving to. Having this information dramatically improves the probability of having trades applied to the stock/sectors that will have better bullish results. Adding the analytical factor of candlestick signals and patterns to individual stock charts increases profitability when trading the candlestick patterns that are starting to breakout. This is not a difficult process. The high probability signals and patterns are easily identified.
The frypan bottom pattern is working exceptionally well during this uptrend. New fry pan bottom setups are identified in MCRB and TUP. NIO is currently benefiting from the frypan bottom trajectory. There is a very simple trading rule when entering a frypan bottom pattern. You can stay long as long as the trend continues to trade above the T line. Last week, numerous J-hook patterns are performing very well. Our recommendation tomorrow on TRIL will be based upon wave three of a J-hook pattern confirmed today. Recognizing when a pattern breakout is about to occur provides the optimal entry point, whether buying stock or options. This produces a trading platform that minimizes having to sit in a trade waiting for it to perform. A pattern breakout is the exact point for entering a trade knowing that it is going to perform well right at that time.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
