July 2nd Market Wrap-Up

Good employment numbers, bad virus numbers, why is the market going up? We do not need to have that ability to figure out why the market is going up. Candlestick analysis merely evaluates what everybody decisions are for either buying or selling. Investing is a forward-looking process. The graphics of the candlestick charts merely reveal that investor sentiment is being influenced by what investors are anticipating for the future. Today’s events and/or facts have been built into the market. Investor decisions are based upon what the expectations are for economic future results. Currently, the market indexes are continuing to trade above the T line. Historic probability-factors indicate that as long prices/indexes trade above the T line, the probabilities are extremely strong the uptrend remains in progress.


Having the ability to analyze the overall market trend allows the candlestick investor to take advantage of potentially strong pattern breakout price moves. The magnitude of these moves are enhanced when knowing the overall market trend is moving in the same direction. Common sense dictates bullish charts are going to have greater bullish strength when the overall market is trading positive. Bearish candlestick price patterns are going to act with more force to the downside when the market, in general, is heading to the downside. This may seem like oversimplified logic, but a major benefit of candlestick analysis is the fact that the chart patterns are created by common sense aspects of what human nature normally does. Currently, J-hook patterns and fry pan bottom patterns continue to work exceptionally well in these market conditions. Our recommendations of APPS, VIVO, ZM and numerous Steady Eddie trending stocks continue to produce good profitability because of a simple trend indicator, they are remaining above the T line.

 

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June 29th Market Direction

The major indexes formed bullish Harami’s Today, a very strong candlestick signal indicating the selling has stopped. However, all the indexes are still trading below the T-line. This allows for the candlestick investor to be prepared for the next trend movement. A failure of the bullish Harami, a lower open tomorrow, would continue to make the T line downtrend the viable analysis. A positive open tomorrow, confirming the bullish Harami, would add credence to the Dow supporting at the 50-day moving average and the NASDAQ supporting at the up-trending channel. Knowing what to expect, based upon how the markets open, allows for increasing or closing long and short positions in the portfolio.

Currently there are sectors that are producing good strong steady profits. Gold stocks, for example, are gaining strength because gold prices continue to slowly move positive. Having the ability to analyze the overall market trend, analyzing individual sectors, and then able to analyze which stocks are producing the strongest signals in that sector allows the candlestick investor to dramatically improve the probabilities of being in the correct trade at the correct time, putting all the stars in alignment. Knowing which candlestick signals and patterns produce the strongest results also increases the probabilities of being in profitable trades at the optimal entry points.

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June 25th Market Wrap-Up

Candlestick signals are created as a graphic depiction of what is occurring in investor sentiment. Candlestick patterns are the accumulation of investor sentiment illustrated in a recognized pattern that is reoccurring time after time. A major benefit of candlestick patterns is that it keeps an investor from getting whipsawed during oscillating markets. The frypan bottom patterns have produced inordinately strong and consistent profits. As witnessed, numerous fry pan bottom patterns continue to trade higher or flat even in a market that had sold off over 700 points. This is because investor sentiment was building up for other reasons in purchasing those positions, which was not concerned about the general market direction.

The Best Friend signal illustrates a new and powerful interest in a price move. This is illustrated from the Best Friend signal recommendation last week in ALT. Today it continued its uptrend based upon news that somebody had accumulated 20% of their stock. After a strong price move into the close today, the announcement has caused more buying in after-hours, up another 15 to 20%. This is not to illustrate great stock-picking ability, this is to demonstrate that the signals will illustrate when something very bullish is occurring in a price move. We may not know what is causing it, all we can analyze with candlestick analysis is that there is strong bullish activity. These are the positions we want to be participating in.

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June 22nd Market Direction

The markets are moving in a manner that makes it very profitable trading candlestick patterns. The Dow and the S&P 500 are trading relatively flat. But the NASDAQ continues to trade above the T line, revealing a J-hook pattern in progress. This merely implies the lack of any selling pressure in the indexes, the likelihood of a continued uptrend is fairly strong. These are market conditions that allow the candlestick investor to utilize simple scanning techniques to identify which stocks and/or sectors are producing the strongest bullish signals. Currently, gold prices continue to head higher and numerous gold stocks have produced very strong buy signals. Our recommendation today on GFI was based upon a best friend signal that gapped the price up through the resistance level, indicating wave three is now in progress. The best friend signal, a Doji followed by a gap up, not only produces high probabilities of a bullish trade, but also indicates a strong potential of a very strong profit trade.

The fry pan bottom pattern has been working extremely well in these market conditions. Numerous stocks have been producing profitable trades based upon the identification of a fry pan bottom i.e. NVAX, LVGO, MGNX. There are a number of stocks that have produced fry pan bottom patterns and are currently at breakout levels. The advantage of identifying a pattern at a breakout level means there is no waiting time to see if a pattern breakout is going to perform. CHGG and VIVO broke out through resistance levels today, making them very good high probability trade set ups upon positive opens tomorrow. This is the type of information that allows a candlestick investor to be in the absolute right place at the right time.

 

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June 18th Market Wrap-up

Lethargic trading days, in the overall market, amplify the significance of candlestick signals and patterns. The market indexes are trading relatively sideways for the past few days. The Dow below the T line, the NASDAQ above the T line, indicating no major direction in the markets. Fortunately, candlestick patterns allow for consistent profitability. Note how the fry pan bottom patterns continue to show good strength. Add the analysis of the Doji sandwich confirming the probabilities of the fry pan bottom’s performing. You gain valuable insights as far as establishing high probability/maximum profit trading strategies. Join us this Saturday for a comprehensive analysis identifying the high profit breakout set ups utilizing candlestick patterns. Then, learn how to apply the appropriate trading strategies, stock and/or option positions. Having a high degree of probability that a price will not only continue to move in the correct direction, but also with a very strong price move, logical option strategies can be put in place to maximize profitability while at the same time dramatically reducing risk.


Our recommendation on NVAX was based upon a fry pan bottom set up with the expectation of more upside after yesterday’s Doji sandwich. LVGO produced the same scenario with the expectation of the development of a Doji sandwich also furthering a fry pan bottom trajectory. Learn how to develop high profit option strategies very quickly and easily knowing what to expect coming from a candlestick pattern set up. Knowing what each pattern and signal implies, based upon centuries of confirming results, produces a trading strategy that constantly puts the probabilities in your favor. Join us this Saturday, you will gain valuable insights on how to maximize your profitability. You will not be disappointed. https://special.stephenbigalow.com/breakout-trading/

 

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June 15th Market Direction

The lack of any hard-selling reversal in the markets was illustrated Today by positive trading after the indexes opening much lower. The advantage of candlestick charts reveals immediately what is occurring in investor sentiment. After the Dow opened down over 600 points, it soon became evident the bulls were stepping in, the candlestick formations started turning green. The NASDAQ started trading positive from where it opened almost immediately. This provides valuable information to the candlestick investor. It reveals the lack of any continued selling pressure, allowing for maintaining bullish positions that are also starting to show buying after the open. Additionally, another major factor that showed the bulls were still participating is the fact that many candlestick patterns traded positive even though the market opened much lower.

J-hook patterns and fry pan bottom patterns produced positive trading from the open today. Candlestick investors have a major advantage. They can see immediately whether bulls or bears are in control of individual stock price moves. Candlestick patterns are the result of a buildup of investor sentiment. They are less likely to be affected by the overall market movement. This dramatically improves an investors profitability as well as greatly reducing the anxiety of what might be occurring in their positions even though the market is moving in the opposite direction.

J-hook patterns produced strong profits in our recent recommendations such as ZM, YY, and GNMK. Knowing the expected results of individual patterns allows investors to concentrate more on positions that are not performing as expected. This greatly improves the process of keeping one’s emotions out of trading. Join us this Saturday, June 20 for a full day training expanding the spotlight training from June 6, identifying breakout move potentials using candlestick patterns. This will be a full day training demonstrating how to maximize profitability on a potential breakout move; calls, puts, credit spreads, debit spreads and a combination that exploits the maximum profit potential of a breakout trade.

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June 11th Market Wrap-Up

Did candlestick charts indicate selling today? Yes! Was the magnitude of the selling anticipated? No, but candlestick charts revealed that taking profits was viable and adding short positions to the portfolio was viable. This puts the candlestick investor in the right direction at the right time!

The graphics of candlestick signals revealed a changing of investor sentiment. Did the signals reveal the magnitude of today’s selling potential? Definitely not, but it put candlestick investors in the position of benefiting from the strong selling, either by having taking profits over the past few days and adding some short positions to the portfolio. The Dow, S&P 500, and the Russell 2000 formed island reversals. These are very strong trend indicators. This would suggest there is more downside to the markets. Any long positions still existing in the portfolio should be producing compelling reasons to stay long. Otherwise, the probabilities based upon candlestick formations and patterns indicate having some short positions in place and maintaining a larger cash position until the market provides better indications the downtrend has stopped.

The strength of the selling today has produced numerous bearish kicker signals. These can be utilized based upon seeing the premarket futures indicating the markets are going to open lower again tomorrow. Due to the magnitude of the selling today, having cash available allows for watching if/when the market will bottom and being able to move aggressively if the markets reverse back to the upside. Utilize the 10 minute chart. This is a simple process. If the Dow moves all the way down to the 50 day moving average with the excess of selling tomorrow, watch to see what occurs on the 10 minute chart to demonstrate whether the 50 day moving average is a likely support level. If the market appears to be trading in a particular direction, the 10 minute chart on individual stock charts becomes a very valuable trading tool.

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June 8th Market Direction

What do you buy when the market is up strong? That is what makes candlestick analysis more clear, the positions that are producing big profits were already established based upon candlestick patterns. The simple process of analyzing the market trend and scanning for the strongest stock/sectors during an uptrend allows the candlestick investor to already be in trades at the appropriate levels. Current profits in many positions is not 5%, 10%, 15%, but more in the ranges of 30%, 60%, 100% plus. Utilizing the T line also helps from taking profits too early, a syndrome that keeps most investors from producing anything more than mediocre returns. The J Hook pattern, bobble breakout pattern, and the fry pan bottom breakout has produced excessive profitability during this uptrend.

BA exhibited a fry pan bottom breakout. Numerous other recommendations have produced huge profits based upon a combination of fry pan bottom patterns, followed by a J-hook pattern, called the classic pattern. Do not take profits just for the sake of taking profits. This is one of the big mistakes most investors make. At worst, take profits on partial positions. But until there is an identifiable market reversal and/or individual stock positions reveal sell signals and a close below the T line, the markets continue to reveal the uptrend is in progress. Take advantage of what investor sentiment is demonstrating.

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June 4th Market Wrap-Up

Numerous candlestick charts are producing high probability/high-profit trade results. This is based upon the convergence of buy signals and buy patterns at the optimal breakout points. Currently, the market indexes have been in steady up-trends based upon the indexes not able to close below the T line. The Dow went from a Piercing signal off the 50-day moving average to the next likely resistance level, the 200 day moving average. That becomes an obvious level to see whether investors were ready to take profits. Today’s trading made that analysis very simple, it formed a Doji. The Doji rule allows for accurate assessment of whether the trend will continue or whether more profit-taking will occur now that the 200-day moving average has been touched. A lower open tomorrow would imply profit-taking at the 200 moving average is now occurring.

Although the markets backed off today, specific sectors produced some very strong bullish patterns. The airline sector has been producing good profits based upon a combination of fry pan bottom and J Hook pattern breakouts. Recognizing the pattern breakout levels allow candlestick investors to enter high probability profit trades at the ultimate entry points. These market conditions are allowing for simple candlestick scanning techniques to identify strong bullish charts as well as strong bearish charts. Be prepared for some profit-taking in the market indexes, making having both long and short positions in the portfolio for the next few trading days the viable strategy. Join us this weekend June 6, for a spotlight training on how to recognize the set ups for the explosive breakout moves.www.stephenbigalow.com/Identifying-Breakouts

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June 1st Market Direction

The definition of a bull market is an uptrending market in spite of massive negative news. The indexes continue their uptrend in the trend channel with both the Dow and the NASDAQ continuing to trade above the T-line. Today’s positive trading occurring even though the news broadcasts filmed dozens of cities being burnt. Candlestick charts reveal what is actually occurring in investor sentiment versus what each of us may think should be occurring in the market trend. The slow uptrend of the markets indicates the lack of any great exuberance, merely steady buying. These types of market conditions allow for the candlestick patterns to work excessively well, not having investor sentiment concerned about any selling pressures. The J Hook pattern has produced a very good profits. Patterns have two major advantages. They produce extremely high probabilities of a direction of a price move and they also provide price moves much stronger than merely up trending stocks during an uptrend. Knowing the results of candlestick signals and patterns give you a competitive edge.

ZM and CRWD produced very strong profits, a scoop pattern and a J-hook pattern. BYND is setting up for a scoop pattern breakout if it opens positive tomorrow. There have been numerous J-hook patterns setting up and producing profits ,FVRR, FSLY, DOCU, OKTA , and many more. Knowing which patterns will produce the biggest profits during an uptrend allows investors to maximize profitability when the markets are trading positive, essentially optimizing the term making hay while the sun shines. Candlestick signals and patterns dramatically improve the probabilities of making profitable trades and participating in trades that will produce large profits.

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