April 2nd Market Wrap-Up

After a bearish Harami on Tuesday, and the markets gapping down below the T-line yesterday, produced higher probabilities that a downtrend was going to start again. However, today’s Bullish Engulfing Signal implied that the selling may not be as pronounced as expected. This makes tomorrow’s trend analysis relatively simple. With the indexes continuing to trade at or below the T-line, the probabilities remain that a downtrend is in progress. But with the bullish engulfing signal closing right at the T-line, a positive open in tomorrow’s trading would provide to relevant factors. The bullish engulfing signal was being confirmed and the trading was back up above the T-line, making a J-hook pattern set up. With the markets trading in an indecisive manner, the candlestick investor has a great advantage of being able to analyze much more accurately what is occurring in investor sentiment. Having the ability to anticipate the next trend movement allows for reorienting the bias/weight of the portfolio. A positive open would imply watching existing short positions to see if they need to be closed. A lower open would imply the T-line was still acting as a resistance level, long positions would need to be scrutinized more closely. When the markets are not moving in a definite direction, it is still feasible for having both long and short positions in the portfolio.

Identifying specific sectors becomes much easier when witnessing strong bullish or bearish signals. Today saw the oil companies picking up strength. The candlestick crude oil chart revealed a strong bounce to the upside. Witnessing numerous stocks having strong signals in the same sector is a better indication the sector is being bought across-the-board by many institutions. This makes individual stock charts in that sector a much higher probability trade. You are not witnessing a renegade bullish signal in a sector that is down trending. The probabilities are much greater that you may be buying a position in a sector that is picking up strength. This was evident in our recent recommendations in HAL and IMO. Bearish charts still revealed maintaining short positions in the cruise lines and numerous retail stocks. Having the ability to identify which sectors have the strongest bullish or bearish charts is enhanced with the use of the T line. Because candlestick analysis is the graphic depiction of human nature, the signals work very consistently. The probabilities are greatly improved when using the natural support and resistance level of the T line. Until there is a definite trend indication, maintain both long and short positions in the portfolio.

 

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

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The Candlestick Forum team.

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March 30th Market Direction

What do the powerful candlestick signals represent? They are the actual buying and selling decisions, not the speculation, not opinions, actual buy and sell decisions. Why is this important? It allows the candlestick investor to see exactly what investor sentiment is doing, cutting through all the “expert” opinions heard on the financial news stations, financial newsletters, and email promotions. Last week the market indexes produced McMuffin patterns. A McMuffin pattern is a MorningStar signal, one of the 12 major candlestick signals, which produces high probabilities of a trend reversal. The MorningStar signal is then followed by a bullish Doji sandwich. The expected results of a Doji sandwich is more upside. When you combine the two signals, a morning sandwich/McMuffin, it produces extremely high probabilities an uptrend is going to remain in progress. Add the factor of the trend remaining above the T line enhances those probabilities. Witnessing the big stocks, AMZN, NVDA, AAPL, NFLX all producing good bullish chart patterns is additional evidence that bullish sentiment has now come back into the markets.

Why is it important to be able to accurately analyze the overall market trend? It allowed for candlestick investors to be participating in the downtrend when the first sell signals appeared in the market trends close below the T line. The McMuffin signal components illustrated when the downtrend had reversed. This allows for simple scanning techniques to find the strongest bullish sectors, then scanning for the strongest individual stock charts in those sectors. This puts the stars in alignment, the probabilities put greatly in your favor. The REIT sector is showing across-the-board buy signals. Numerous specialty medical supply companies are obviously working well in these market conditions. Knowing which sectors are acting the strongest allows the candlestick investor to pinpoint the best trade set ups.

CMD and DNLI our recent recommendations that illustrated good strong chart patterns based upon the current virus situation. You do not have to know formulas, you do not need technical analysis skills! You merely need to visually recognize and understand what candlestick reversal signals are illustrating about human nature. Do not complicate investing. Candlestick charts keep it simple.

 

Chat session tonight at 8 PM ET.

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The Candlestick Forum team.

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March 26th Market Wrap-Up

The McMuffin pattern! Not a very sophisticated sounding pattern but it is extremely reliable. It is formed by the Morning Star signal, one of the 12 major signals, followed by a Doji sandwich. In short, a morning sandwich, the McMuffin. These are the type of visual analytics that allow candlestick investors to start adding to long positions with great confidence. The MorningStar signal provides the expectation that a reversal is occurring. The Doji sandwich indicates more upside. The combination of a MorningStar signal followed by a Doji sandwich is a double confirmation that the bulls have taken control. This is provided visual recognition of high profit trade set ups. The important factor is being able to identify when there is a change of investor sentiment. This allows for entering trades that have upside potential well before everybody else is starting to move in. Boeing for example, trading it $99.00 four days ago is now trading at $180. There are numerous stocks that have produced very strong reversal signals that have the potential of doubling in a very short time frame.

Being able to identify the strongest top ranked candlestick signals and patterns allows an investor to make hay while the sun shines. You obviously want to be able to find the stocks that are going to move the strongest when a market is moving in the correct direction. Candlestick reversal signals allow you to identify which price moves are going to be much stronger than the normal price moves of most stocks. Adding confirmation indicators such as the T line dramatically improves the probabilities that an uptrend is in progress. This allows for identifying the target areas that will produce the biggest returns during the current trend. Utilizing the high profit candlestick patterns also produces high probability trade results based upon the exact entry points. There are numerous stock charts revealing top ranked reversal signals that have the capability of producing very strong profits. Why? Because investor sentiment can be clearly identified as to the strength of a price move through simple visual identification of the strongest reversal signals.

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

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The Candlestick Forum team.

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March 23rd Market Direction

What is affecting the market trend? Politics! That was evident in the price movements of the markets today when there was the prospects of a relief bill passing and then the realization the relief bill was not passing. This becomes relevant information for anticipating the market trend is predicated on what bills can be passed. That implies the market trend has gotten to a level where investor sentiment is looking for something to help reverse the downtrend. What will be the best stock price reversals when the market reverses? That is currently being illustrated by candlestick reversal signals already performing. Last week ZM was identified as a potential J-hook pattern. Today, there were numerous Doji sandwich breakouts through the T line. What this illustrates is that buying has started back in this market. The candlestick investor gains a huge advantage by being able to identify which stock/sectors are starting to show buy signals. This implies that those stock/sectors will probably act the strongest when the market in general starts reversing and showing strength. The more you learn what is incorporated into candlestick signals, the more you become convinced that price movements are based upon investor sentiment. Even if you have a relatively successful trading strategy/system that you are currently using, when you add candlestick analysis charts to your analysis, you dramatically improve the visualization of successful price moves.

Do not get discouraged. If you are relatively new at candlestick analysis, the lack of any good trade set ups from the candlestick charts is very informative. There are not any good candlestick trade set ups occurring in this market. 98% of the time the candlestick charts will reveal a number of good bullish charts or berries charts no matter which way the market is moving. 2% of the time the markets will illustrate not to be in the market. We are in that 2% time frame. Be patient, the rubber band is stretching. There will be strong bullish trades very soon. Chat session tonight at 8 PM ET. Mark your calendars, April 4 and 5 will be a two day comprehensive training, the Triple T training. This is identifying and understanding the major candlestick signals and patterns with enhancing probabilities of the T line. Take advantage of this information, it will improve your investment perspectives for the rest of your life.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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March 19th Market Wrap-Up

When is it time to buy? Wouldn’t you like to have a set of indicators that revealed when a trend reversal was about to occur? You have it! Candlestick analysis is extremely reliable. You are able to visually recognize when investor sentiment is about to occur. This is becoming evident based upon the appearance of reversal signals in the major indexes. Why was Today’s bullish trading any more relevant than other bullish trading days during this downtrend, bullish trading days that did not create a reversal? They were not reversal signals. The Dow has formed to Doji days in a row. These are actually potential reversal signals in the oversold condition well away from the T-line. That makes the viability of the past two trading days much more important. This is information you will be able to utilize to enhance your analysis of price movements. Does this mean a reversal is about to occur? This means the probabilities of a reversal about to occur extremely strong.

Putting the stars in alignment, being able to visually evaluate whether there is a reversal about to occur makes scanning for bullish chart patterns the current strategy. There are numerous stock price reversals in progress. Although a major reversal has not yet occurred in the general market, it is evident that there is buying in specific stocks and sectors. You do not have to be a sophisticated technical analyst when using the graphics of candlestick charts. Simply viewing the candlestick formations produces high probability evidence the bulls are starting to buy. The simple visual analysis of a candlestick chart allows you to have much greater control of your own investing future. Take advantage of our chat session tonight, which will be incorporating candlestick reversal signals in conjunction with the T-line. This is information that dramatically improves an investors profitable probabilities. Chat Session tonight with Stephen Bigal0w. Click here to register.

 

Good investing,

The Candlestick Forum team.

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March 16th Market Direction

The bottom is near! Candlestick logic provides the evidence to back up that statement. Investor sentiment produces the same results time after time. When investor sentiment can be correlated with confirming indicators, the probabilities of a reversal get very strong. The graphic depiction of human nature can be easily identified on a candlestick chart. It allows you to take the guesswork out of investing, eliminating emotions.You do not have to be a sophisticated technical analyst! You merely need to learn what the signals are demonstrating, when a reversal in investor sentiment is getting prepared. Before candlestick analysis came along, I would be crying in my beer, waiting for the market to turn around and stop my losses. Now, there is no anxiety. Simple candlestick signals showed when it was time to close out long positions and go short. That was about a month ago. That was not based upon having any great insights as to a strong selling market, it was merely identifying what the candlestick charts were revealing.

But now there are indications of a bottom in the market. The first analytical factor is when candlestick reversal signals indicate it is time to buy. But then there is a another important factor! Buy what? Fortunately the simple candlestick scanning techniques reveal which stocks or sectors are going to produce the biggest upside potential. Today indicated gold stocks were getting bullish sentiment. Medical stocks started showing strength also. Candlestick analysis creates a ‘reverse engineering process’. This is simply the visual alert provided by candlestick charts indicating where the buying is coming in. The reverse engineering process is merely analyzing why that sector is gaining strength. Bottom line, this process puts you in the right positions at the right time with a high degree of probability. We will be doing a special session on Wednesday night March 18, illustrating how to identify breakout moves and the strong reversal signals indicating which sectors are going to produce the biggest profits.Why is it so hard to buy at the bottom? Because we all have the same fears. Candlestick analysis changes all that. Because the graphics of candlestick signals reveal what is going on in investor sentiment, witnessing buy signals provides valuable information. It was revealing that somebody was overcoming the fear factor. WHO? The smart money! And we want to be trading with the smart money.

 

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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March 12th Market Wrap-Up

What will the market do after the most severe sell off in history? A fundamental analyst may project at best a slow market recovery once the virus problem dissipates. But as a candlestick analysis investor, anticipating a market reversal will have a completely different perspective. What produced the rapid selling of the markets? Investor sentiment! Fear! What can every investor in the world analyze about the markets? They are dramatically oversold! As a candlestick investor, what can be anticipated about investor sentiment? When the selling has stopped, anticipate the other investor sentiment, greed! When the investment community recognizes that buying has come back into the markets, expect a massive buying spree.

Fortunately, using candlestick analysis, the signals will indicate the reversal. When you grab for the fallen knife? The candlestick investor has a great advantage, they can recognize the reversal signals that reveal the change of investor sentiment immediately. What is the upside potential? How many people would have anticipated the market selling off with 1500 to 2000 points a day? Unheard of! What could be the potential of a snapback reversal? 3000 points today? Unheard of but not out of the question. Whatever the upside potential, the candlestick investor has the advantage of seeing when the change of investor sentiment has occurred and has a much greater probability of participating in a bullish price move, whether it be a slow uptrend or huge bullish days. This analysis is not to try to anticipate what the reversal move will be, it merely implies that the candlestick reversal signals will have investors in the right direction at the right time.

 

Chat session tonight at 8 PM ET.at 8 PM ET with Guess Speaker Todd Horwitz. Click here to register.

Good Investing,

The Candlestick Forum Team

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March 9th Market Directions

It is very comfortable trading these market conditions! Say what???? If you are like me before I discovered candlestick analysis, I sat through many dramatic selloffs with great anxiety. “How can I be sitting in these losing positions again,” I would ask myself. Now it is very comfortable sitting with positions in this type of market, short positions. Instead of trying to figure out how I could be so stupid to be in the wrong direction at the wrong time, candlestick analysis allows me to be comfortably waiting for taking big profits on short positions. This is because of the simple logic the Japanese rice traders built into candlestick analysis. It was very easy to see when it was time to close out long positions and add short positions to the portfolio. Fortunately, reviewing candlestick signals and patterns allows an investor to ingrain very powerful investment lessons into their investment psyche that keeps them from sitting through big price trends again with anxiety. The simple logic incorporated into candlestick analysis creates a trading platform that improves trading profitability exponentially. Instead of hoping for a reversal in a market trend to stop the losses in your portfolio, utilizing candlestick analysis produces an extremely profitable dynamic. Watching for a trend reversal provides the candlestick investor the graphic analysis for taking big profits when closing out short positions and then having that cash available for establishing long positions at the appropriate time.

The markets are providing a valuable learning moment. Tonight’s special chat session on how to utilize this big selling pullback for mentally processing how to be prepared for these big moves in the future. When is it time to grab for the fallen knife? That is the great benefit of knowing what each candlestick signal and formation is revealing. Simple analysis reveals when a price is about ready to reverse or when a price is going to continue in the current trend. You will gain valuable insights into your trading strategy when you know when high probability signals and patterns are getting ready to show a change of investor sentiment. Join us in tonight’s special chat session revealing high probability trading results. When is it time to buy? Candlestick charts reveal when there is panic. You do not have to be a sophisticated technical analyst. You merely need to learn the signals and patterns that have produced high profit results for the past 400 years. The market indexes are providing excellent learning process that will improve your investment results for the rest of your investing career.

Chat session tonight at 8 PM ET. Password will be 3920event.

Good investing,

The Candlestick Forum team.

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March 5th Market Wrap-up

The information built into candlestick charts provide a very clear assessment of whether there is a bullish trend or a bearish trend. But just as effective is the analysis, from the graphic candlestick information, of when investor sentiment is not demonstrating a consensus of a trend. As illustrated in the markets over the past few trading days, the whipsaw action demonstrates the lack of bullish or bearish consensus. The T-line also remains an effective trend indicator. The basic T-line rule is effective for identifying a bullish trend as well as a bearish trend. A bullish trend remains in progress after a candlestick buy signal and a close above the T-line until there is a candlestick there is a candlestick sell signal and a close below the T-line. A bearish trend is evident after a candlestick sell signal and a close below the T-line. The downtrend remains in progress until a candlestick buy signal appears followed by a close above the T-line. What if the trend keeps waffling above and below the T-line? This is an often asked question. The answer is simple. The trend/investor sentiment does not know which way it wants to go. How is that effective for an investor? It indicates the probabilities cannot be put in one’s favor, stay in cash for a while.

Knowing that the major indexes are still closing below the T-line, the prospects for short positions are much better. Simple candlestick scanning techniques reveal the sectors that are likely to have the best short position profits. Currently due to the virus scare, cruise line stocks as well as casino stocks continue their downtrend, enhanced by bearish J-hook pattern set ups. Any long positions remaining in the portfolio still require the final confirmation of remaining above the T-line. Maintaining positions merely requires utilizing the simple rules that apply to human nature, with the T-line confirming the graphics of human nature. For most investors are showing great anxiety about these market conditions, the candlestick investor enjoys profitability by being in the right positions at the correct time of a trend. The short positions obviously have created very strong profits. The Japanese rice traders have a very simple philosophy. Let the market tell you what the market is doing. You do not have to be a sophisticated technical analyst to understand the information built into the candlestick signals.

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

Good Investing,

The Candlestick Forum Team

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March 2nd Market Direction

The reversal in the markets were anticipated as described in the YouTube of Sunday night, market reversal. The set up for a reversal was illustrated by the indicators created by human nature. Friday showed a gap down in the oversold area and the formation of a Doji/hammer signal. More telling was the fact that the potential Doji/hammer reversal signal occurred in an excessive distance away from the T-line. The NASDAQ produced a belt holds/meeting line signal, also well away from the T-line. Knowing the probabilities based upon the overextension of selling allows the candlestick investor to be aggressive. Witnessing a positive open in today’s trading produces the incentive to be buying long positions immediately, positions that were confirming reversal signals. One of the comments in the chat room today was that it is still hard to commit to long positions with such bearish sentiment in the markets. This is exactly why understanding the signals that set up for a major reversal is so beneficial to a candlestick investor. It cuts through the emotional thought process, circumventing the emotions that people have when the markets are selling off. This promotes the probability expectation that a reversal is occurring and not being deterred by the emotional fear factor.


Numerous belt holds signals on Friday in the oversold condition provided the visual set up for aggressively buying bullish confirmation in those stocks on the open today, understanding that a change of investor sentiment had occurred in the formation of those signals. Being mentally prepared for a high probability reversal situation allows the candlestick investor to be much more aggressive. Having the ability to identify what the signals and patterns are actually illustrating, the actual buy and sell decisions of investors, cuts through all the verbal rhetoric of the “experts”and the financial news broadcasters.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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