Multi Index reversals October 14th Market Wrap-Up

The combination of the market indexes produced an extremely high probability reversal. The NASDAQ had formed a potential bullish flutter kicker set up on the positive trading yesterday, opening at the previous day’s open and closing higher. The S&P 500 formed an inverted head and shoulders pattern which in the Japanese rice traders terminology is called a three valleys pattern. The Dow, after forming a long leg a Doji yesterday, opened positive today and has now close just slightly above the 50 day moving average. The choppy/indecisive nature of the market will require trading above the 50 day moving average to get it out of its choppy range. This means lower trading tomorrow continues to make the market choppiness still in place.

But these market conditions are still producing extremely strong bullish as well as bearish profitable trades setups. As demonstrated in OCGN, a scoop pattern bullish slingshot affect is in progress. Not only are these high probability directional results, but the magnitude of the profits is extremely strong. Knowing the top-ranked signals and patterns provides very strong profit potential when applying the appropriate option trade strategies to the appropriate price moves. Join us on October 23 for a full-day training on identifying the strongest signals and patterns and then applying the correct option trades to maximize profitability. This training also incorporates solidifying the mental process to be a successful trader intertwined with the analysis. This is an extremely valuable aspect built into candlestick analysis.

 

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The Candlestick Forum team

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Market Trend Failure

The evening star signal that formed in the Dow today, revealing a failure of the 50-day moving average a second time, and closing right on the T-line makes for a simple trend analysis assessment. If the premarket futures indicate a lower open tomorrow, a downtrend should be back in progress. Additional evidence was the NASDAQ closing below the T line and failing to break up through the downtrending resistance level. This visual evidence implies adding short positions on a weaker open tomorrow.

Strong sell signals as seen in CMCSA and CHGG is a high probability of short trade situations. Simple logic dictates that if you see strong sell signals in individual stocks and the market, in general, is starting to sell off again, shorting these positions produces high probability expectations. Join us on October 23 for a full-day training of identifying the top-ranked candlestick signals and patterns, the most powerful signals and patterns. Additionally, learn which options strategies produce the best results in conjunction with the strong candlestick patterns. 2+2, putting the probabilities in your favor and then maximizing profits from those probabilities.

Chat session tonight at 8 PM ET.

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The Candlestick Forum team

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Market Reversal

The graphics of candlestick charts revealed a change of investor sentiment was setting up based upon the bullish signals that had occurred over the last few days of trading. The final criteria still needed to be confirmed, a close above the T-line. The bullish sentiment that was illustrated over the past week allow investors to be prepared to start covering short positions that were in the oversold area and starting to show bullish participation. This also allowed for establishing long positions immediately if it appeared the indexes were going to start trading back up above the T line. This is where witnessing the premarket futures showing good strength allows candlestick investors to move instantly and aggressively. Having the ability to identify when a major reversal is about to occur allows for establishing profitable trades at the optimal entry points. This allows for entering profitable trades early.

Join us this Saturday for a Mini spotlight training on which options strategies to use with corresponding candlestick signals and patterns. A combination of calls or puts, with bullish or bearish spreads, is usually much more effective in profitable than merely buying calls or puts on their own. A major advantage of candlestick charts is identifying when a new price move is about to occur. Establishing the appropriate option strategy allows investors to maximize profits well diminishing risks. Click here for more information.

 

 

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The Candlestick Forum team

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October 4th Market Direction

How to learn quickly the effectiveness of the T line rule? Look at any chart that shows a sell signal and a close below the T line, then analyze what the trend did after the close below the T line. This is words of experience. It does not take many times to be sitting in a losing position, hoping for a reversal, wondering why we are sitting in a losing trade again. Simple observation indicates the first close below the T line, especially in the overbought area, was where the long trade should have been closed and start looking for short positions.

The indexes have failed at the T line for the past few weeks, making the 200-day moving average a likely target. The graphics of candlesticks allows investors to see much more clearly what a trend is doing. Obviously, closing out long positions and adding short positions when the market indexes started showing sell signals will dramatically improve your profitability and take the anxiety out of sitting in long positions when the market is going the other way. Join us on October 9 for a Mini spotlight training session on applying the appropriate option strategies to specific candlestick patterns. You will gain great insights into which simple option strategies perform the best based upon the information built into candlestick charts. Click here for more info

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The Candlestick Forum team

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Accurate Market Analysis

Candlestick signals and the T line produce high probability analysis when analyzing the overall market trend. The strong bearish candlestick signals and the indexes closing below the T-line allows the candlestick investor to be in the appropriate positions. Go with the flow! Knowing the markets are in a strong downtrend allows for scanning for the strongest bearish trades. This is a combination of candlestick signals and gaps. Witnessing gaps after a candlestick signal demonstrates the strength of the new trend. This works both on the short side as well as the long side as illustrated in NET and STNG.

 

Candlestick’s logic is very simple. The signals and patterns illustrate high probability price moves. Applying the appropriate option strategy with that price move dramatically improves profitability. When you put all the stars in alignment, being able to analyze the direction of the markets, identifying the strongest signals and patterns that will benefit from the market direction, and then applying the most profitable option strategies, you gain a huge advantage for being in the right trades at the right time. Join us Saturday, October 2 for a free candlestick forum mini spotlight training utilizing the appropriate option trades for the appropriate price moves. Click here to register

Chat session tonight at 8 PM ET. Click here to register

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The Candlestick Forum team

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NASDAQ Market Trend Warning

The market indexes provided some warning Today. The NASDAQ and the S&P 500 gapped down to the previous day’s trading lows. This is not a bullish indication! If the bulls are in control, the indexes should not be gapping down to the previous trading day low. However, the Dow and the transportation index traded higher. This is now providing the distinct analysis the market is providing specific sectors as strong investment areas while other sectors are showing weakness. The simple scanning techniques of candlesticks allow investors to pinpoint which of those sectors/stocks are acting the strongest. The oil stocks and the transportation stocks are continuing to show good strength, coming up off of strong candlestick signals and patterns.

One of the strongest bullish signals that are not easily recognized is the message signal. It is a strong gap up but profit-taking occurring during the rest of the time period. Fortunately, candlestick analysis provides a very common sense entry strategy and expectation of what is likely to occur after the selling has stopped. This is been illustrated in our recommendation recently of TVTX. The same setup is now occurring in MRIN. Knowing that there is likely to be a steady uptrend, a recommendation in our options room was to buy the MRIN October 10/12.50 call spread for $0.75. The price merely has to move from the $10.50 level to the $12.50 level. We will be doing a free options trading strategy session this Saturday, October 2 to demonstrate how simple spread strategies in the appropriate chart move provides much greater profitability with much less risk. Join us this Saturday, this one-hour training session is free and you get an immense amount of common sense trading information. Click here to register


 

Chat session tonight at 8 PM ET.

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The Candlestick Forum team

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Morning Star reversal in the Dow

The Dow produced a very obvious reversal signal, a MorningStar signal, one of the 12 major candlestick reversal signals. Additionally part of the signal had an inverted hammer signal. The inverted hammer signal alone in the oversold area, getting positive confirmation has a 95% probability or greater of an uptrend starting. Today’s positive trading, closing the Dow and the NASDAQ well above the T line also dramatically improves the probabilities that the uptrend has started again.

The best way to take advantage of an uptrend in the markets is defined the stocks that have the strongest bullish candlestick signals. The best friend signal is a powerful bullish indicator, a Doji followed by a gap up. As witnessed in our accumulation of
QS, the best friend signal of this week has produced excessively strong profits.VET was recommended because of the best friend signal yesterday which would be a strong indication a J-hook pattern was in progress. A major advantage of candlestick analysis is that it not only identifies the direction of a price move but can identify the signals/patterns that are going to produce the strongest price moves. Join us October 2 for a free Saturday training session on which option strategies to utilize to maximize the benefits of strong candlestick price patterns.

 

Chat session tonight at 8 PM ET. Click here to register.

Good investing,

The Candlestick Forum team

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September 20th Market Direction

If you are like me, before I learned candlestick analysis, you would be sitting waiting for this market to turn around, with excruciating pain that you are still in your long positions. One of the best feelings in the world, coming from one of the worst investors in the world before candlesticks, is enjoying the downtrend because you were already predominately short. You will find that it is amazingly accurate using candlestick signals and the T-line to have your trade positions in the appropriate direction. Candlestick charts do not lie! They are the actual decision-making of investors buying and selling. Candlestick charts are merely the graphics of those decisions. Add the T-line, a natural support and resistance level of human nature, and you now have a trading platform that is extremely accurate.

A close below the T-line produces an extremely high probability result! A downtrend is in progress. The same scenario is applied to bullish trades. A close above the T-line after a candlestick buy signal produces extremely high probabilities an uptrend is in progress. Currently, the Dow and the NASDAQ are trading well below the T-line. Stay predominately short.

 

Good investing,

The Candlestick Forum team

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Optimal Profit-Taking Techniques

The market direction is providing an excellent opportunity for profiting in both long positions and short positions. The simple graphics of candlestick analysis allows investors to take profits at the appropriate times and identify the strong selling signals for entering short positions. Both long and short positions have been producing good trades over the past two weeks. Being able to identify when the market direction is starting to change gives the candlestick investor a huge advantage. Simple scanning techniques allow for identifying the strong sell signals, entering short trades. Join us on September 18 for a full day of training on being able to identify when it is time to take profits, both in long positions and short positions. This visual information dramatically improves profitability when closing out profitable trades.

The use of the 10-minute chart uses very simple logic for when to take profits on excessively large price moves. Candlestick signals work effectively on the one-minute chart as well as on the monthly chart. Candlestick signals are the graphic depiction of everybody buying and selling during a specific time frame. This is valuable information for the day trader or the options trader. The 10-minute chart pinpoints when to be buying and when to be selling big price moves.

Chat session tonight at 8 PM ET with Guest Speaker Daniel Sinnig. Click here to register.

Good investing,

The Candlestick Forum team

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Good Short Trade Setups

When you do you take profits and when to use short? This is the advantage candlestick charts provide for investors. Just because it is time to sell does not necessarily mean you want to short. Candlestick signals and patterns show when a powerful sell force is coming into a price. This Saturday, our full day training on when to sell is going to be accentuated by the indicators that produce the best probabilities for getting out of a bullish trade and identifying the strongest selling signals that would warrant shorting trades. This is based upon reoccurring human nature through the centuries.
The Dow is currently revealing a bullish Harami at a potential support level. This makes it very important to see what the premarket futures are demonstrating tomorrow. These market conditions are providing excellent bullish trades as well as excellent short trades. Obviously when the market conditions do not show a decisive consensus in all the indexes, having the ability to make profits both long and short dramatically reduces the risk. There are currently some very strong sell signals in specific sectors. There are also some very strong bullish patterns in other sectors.

Join us this Saturday for a full-day training on when candlestick charts are revealing the probabilities going against long position trends, indicating when it is time to take profits. This information is also applied to when to take profits on short trades. You will gain an immense amount of insights for when to close profitable trades without giving back some of those profits. Join us Saturday, you will get much more information than you anticipate. Click here to register.

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