Many times it is asked how can you make an evaluation of a market trend when is waffling up and down? That is the answer! The graphics of candlestick charts reveal that it is waffling. That is the evaluation. That clearly illustrates there is no major trend of the market indexes, making the best market strategy to have both long and short positions in the portfolio or trade only very specific strong candlestick breakout patterns or take a break from trading and get refreshed. Simple logic dictates that the analysis of the candlestick charts reveals whether you want to be predominately long, predominately short, both long and short, or stay out of the market until a better trend direction is revealed.
Fortunately for the candlestick investor, the simple scanning techniques for candlestick signals and patterns will provide more trades than most investors will be able to handle on any given day. Having a good supply of trades allows for cultivating for the best trades. Currently, breakouts are still producing good profits as witnessed in NCTY, a bobble breakout. MorningStar signals forming right on the 50 day moving average,ENTX, JYNT. Having the knowledge of what is occurring in investor sentiment based upon candlestick signals and patterns at observable support and resistance levels provides a huge advantage for knowing what the probabilities will be for the trades set up. This is not rocket science.
