The T line rule works effectively! If you see a candlestick sell signal and a close below the T line, the probabilities are extremely strong your in a downtrend. The T line rule also works effectively for warning when markets/prices are too far away from the T line, providing an alert for looking for potential bounces back up to the T line. If short, watch for potential bullish bounces.

What is really fun? Being in the right direction of a market trend at the right time. And it does not take a tremendous amount of analysis to be in the correct direction, the T line rule working in conjunction with candlestick signals produces high probability results. A good example,NFLX, ROKU. Stay predominately short until you see buy signals.

Currently today’s positive trading in the indexes are creating a bullish Harami’s, stochastics in the oversold area. It will be important to see how the indexes close. A close at the high end of there trading range will create a bullish Harami’s. A close near the lower end of there trading range would imply the downtrend is not yet over. Be ready to cover short positions that are showing buying signals in the oversold area.

Be suspect when seeing positive trading in a downtrend when stochastics are still heading in a downward trajectory and not in the oversold area. Stay predominately short. Currently there is no candlestick reversal signals appearing in the market indexes in the indexes trading below the T line. The downtrend remains in progress.

The Dow, bearish Doji sandwich, the S&P 500 bearish trend kicker signal, NASDAQ opened below Friday’s open. The downtrend obviously remains in progress. The short positions are working well. Oil stocks continue to trade positive. Stay predominately short.

The indexes are below the T-line. That makes any positive trading early in the day suspect. Assume the downtrend remains in progress. Trading should be oriented toward the short side. Take advantage of the strong sell signals.

The market nature remains indecisive, the Dow is trading positive, the NASDAQ is trading lower. This continues to make the trading strategy having both long and short positions in the portfolio. The sideways mode of the market direction is evident. Note the NASDAQ is having a hard time getting up above the T line.

The expected bounce is occurring in numerous down trending positions. The markets are still in an indecisive mode, the Dow and S&P trading lower, the NASDAQ trading slightly higher. The T line and the 34 EMA appears to be a target/resistance level in numerous stock positions. Stay predominately short, let the day play out.

From the voice of experience, when the markets/trends close below the T-line, the probabilities are extremely strong you want to start closing out long positions that are not acting well and adding short positions to the portfolio. The T line rule will improve your profitability immensely.

The downtrend in the markets remain in progress as the T line rule would indicate. Any long positions should have very compelling bullish charts, but the portfolio should have a bias toward the short side.