January 27th Market Wrap-Up

The T-line is a powerful candlestick emotion-eliminating indicator. It keeps candlestick investors from getting whipsawed. Candlestick signals are the graphic illustration of what is occurring in investor sentiment during specific time frames. The T line is a very strong probability indicator, downtrends remain below the T line, uptrends remain above the T line. Combining these two factors produce an extremely accurate and powerful trading analysis tool. As illustrated in the market indexes over the past few trading days, candlestick buy signals were formed in the oversold area. This either indicated a reversal of the market trend or merely a bounce. The lack of any close above the T line indicated merely a bounce in the market trend.

Having the ability to analyze what is occurring in investor sentiment eliminates emotional trading and the dependency of listening to the talking heads on financial news stations. Candlestick signals are the actual decision-making executions made by investors versus conjecture of what will occur in the overall markets. Numerous short positions have worked extremely well in conjunction with the market indexes revealing sell signals and closing below the T line a few weeks ago. Not only do candlestick signals and patterns identify the correct direction but candlestick powers signals reveal which trends will have the greatest strength during a specific market trend. Click here to register.

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January 24th Market Direction

The simple logic built into the Japanese rice traders’ chart analysis allows candlestick investors to maximize profits. Today, the gap down in the indexes provided an alert. The Japanese rice traders illustrate where most people sell, they panic sell at the bottom. That is the alert demonstrated by a gap down in the oversold area. The next alert was the visual analysis of the excessive distance the indexes had moved away from the T line. That combination was a strong alert to start watching for a market reversal.

The 10-minute chart becomes a valuable tool for indicating when an excess selling had come to an end. Candlestick buy signals on the 10-minute chart and a close back up above the T line revealed where bulls were starting to step in. Candlestick chart analysis is merely the graphic depiction of what is occurring in investor sentiment. You can maximize your profitability by closing out short trades at the most optimal time when taking the simple steps to analyze when investor sentiment is changing well in oversold conditions. This is what amplifies the profitability of power trades. Mark your calendars, February 5 will be a full-day candlestick training on identifying the power signal and pattern trades. You also get a lot of this repetitious learning process in our daily chat rooms. Join us for a free trial. You will gain much more insights into trading than you expect. Click here for more information

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Good investing,

The Candlestick Forum Team

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January 20th Market Wrap-Up

Today’s positive trading did not indicate a reversal. This was the warning put out during our morning comments. Why? First, there needed to be a candlestick reversal signal. This meant waiting until the end of the day to see what type of investor sentiment was occurring. Second, the T line rule! As long as the indexes were still trading below the T line, it has to be assumed the downtrend remains in progress. This caution, created by the lack of any reversal signals, keeps candlestick investors from entering bullish trades too soon. Numerous stock charts indicated the potential of reversal signals and trading above the T line early in the day. But the Japanese rice traders always profess that a candlestick signal is not created until the close. Many stocks traded up above the T line with buy signals early in the day but eventually close back below the T line indicating the lack of any reversals of their downtrends.

Putting the stars in alignment is simple with candlestick analysis. Visual analysis is very effective for analyzing the trend of the overall market. Analyzing the downtrend of a market makes it very logical to be scanning for the strongest candlestick sell signals in individual stock prices. Strong sell signals and patterns dramatically improve the probabilities of trading in the correct direction. This allows investors to trade based upon probabilities, visually recognize with candlestick signals and patterns, versus the normal emotional trading of most investors. Join us each day in our chat room. You will be exposed to many experienced traders that can dramatically improve your candlestick trading ability.

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Good Investing,

Stephen Bigalow

 

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January 18th Market Direction

Market analysis is greatly simplified when using candlestick signals and the T-line. The T-line rule provides a very powerful assessment of what is occurring in human nature. Individual candlestick signals tell you when a price move is about to reverse. A candlestick signal followed by a close above or below the T line is a high probability confirmation a new trend is starting. Witnessing candlestick sell signals and the market indexes closing below the T-line has allowed for a couple of weeks of very profitable short at the correct time.

However, the extremely powerful aspects of candlestick signals and patterns are revealed with witnessing bullish fry pan bottom signals producing good bullish profits even though the overall market trend has been heading lower. Candlestick patterns are the accumulation of investor sentiment. They illustrate what is occurring in specific stock moves in spite of general market conditions. Learning the candlestick signals and applying them to candlestick patterns greatly improves the probabilities of being in the correct trades at the correct time. These market conditions have allowed for good profits both in long positions and short positions.

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Good investing,

Stephen Bigalow

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January 13th Market Wrap-Up

The visuals of candlestick analysis make trend analysis very easy to apply. As illustrated in the Dow and the NASDAQ, the positive trading of the past few trading days did not have a final bullish confirmation, a close above the T line. Especially in the NASDAQ, where after a few bullish trading days, which were not candlestick reversal signals, yesterday’s trading still could not close above the T line. That probability factor makes suspecting whether a bullish reversal has occurred much more enhanced. Additionally, the lack of a close above the T line was also suspect because stochastics were still in a downward trajectory. These simple factors allow the candlestick investor to maintain portfolio positioning without getting whipsawed out of a good trade.

It can be easily analyzed as far as the overall direction of a market trend. Logic dictates that if you can analyze a downtrend is starting or in progress, simple candlestick scanning techniques allow for identifying good short trades. But profitability can be greatly improved by identifying the power short trades. Join us this Saturday, January 15 ,for identifying the simple process, for not only being in the correct direction of a trade, but identifying the correct direction AND trades that will have the most profitability prospects. The Candlestick Frum Mini Spotlight training sessions are scheduled for one hour ( anticipate at least two hours) for revealing the strongest trades set ups. Join us, you will get much more information than you expect. Click here to register.

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

Good Investing,

Stephen Bigalow

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identify power signals January 10th Market Direction

The downtrend remains in progress, even though there are potential reversal signals formed today in the indexes. However, they have to be viewed with a little bit of skepticism because of the trajectory of the stochastics and the indexes continuing to trade below the T line. A change of market direction/investor sentiment requires bullish confirmation of reversal signals and a close above the T line. Until then, short positions can continue to be held with the T line being the final criteria.

A major advantage of candlestick analysis is not only being able to analyze what the overall market direction is doing, but being able to scan for the strongest powers signals that will be most profitable during the current trend. Obviously, and a bearish market, finding sell signals utilizing simple candlestick scanning techniques allows for high probability trades. But even more so is the identification of the power sell signals. This allows for maximizing profitability during an existing market trend. Join us this Saturday, January 15 for a Candlestick Mini Spotlight training, identifying the strong powers signals. Simple visual analysis allows investors to maximize their profitability by being in a strong price move. Click here for more info

 

 

Good investing,

The Candlestick Forum Team

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January 7th Market Wrap-up

The markets usually show which sectors are going to act the strongest or the weakest based upon the first few days of the new year trading. However, candlestick analysis is a much more accurate assessment of whether the assumed expectations of what normally happens is continuing to perform. This year, the overhang of inflation, which is now lead to the feds indicating they were going to start raising rates, took the wind out of the sails. Anytime the feds are raising rates, that creates a bearish reaction in the markets. This is why using the candlestick charts allows investors to more accurately trade in the right direction based upon the Japanese rice traders simple philosophy, let the market tell you what the market is doing.Knowing the current trend is in a downtrend, a major benefit for candlestick investors is the ability to scan for the strongest bearish chart potentials. The bearish best friend and bearish Doji sandwiches produce high probability short trades. Join us January 15 for a candlestick mini spotlight training on identifying the powers signals.

Chat session Tonight. Click here to register.

Good Investing,

Stephen Bigalow

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January 3rd Market Direction

The first few trading days of a new year using indicate what money managers have decided would be the good strong or weak sectors going into the new year of trading. This often produces big movements in specific sectors as well as the market indexes themselves. However, today’s trading showed bullish sentiment, with the indexes using the T line as support and continuing to trade higher, but it did so in a gradual fashion. Quite often, big price moves occur coming out of the chute during the first few trading days. Today’s positive trading occurred on a very calculated basis. The Dow traded up approximately 60 points for a good part of the day but then started slowly trading positive with the other indexes going into the latter part of the day. It was a gradual progression of buying, indicating more of a continued uptrend of the previous market trends before the year-end.

Today’s positive trading also showed strength resuming in the electric vehicle sector and a reversal in the downtrending oil stocks. These price moves were not rampant, indicating a more calculated buying process. The nature of today’s bullish sentiment is revealing a continuation of the current market trend, making the analysis of each individual stock/sector the top criteria. Let the market tell you what the market is doing. Candlestick investors gain a huge advantage by easily identifying which signals and patterns are occurring in specific stocks, constantly putting the probabilities of being in the right place at the right time in their favor. Happy new year, look for a very profitable 2022.

Good investing,

The Candlestick Forum Team

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December 27th Market Direction

Santa Claus rally? The benefit of candlestick analysis is having the ability to see what investor sentiment is actually doing. This current rally, the Santa Claus rally as everybody has anticipated, is visually confirmed with candlestick analysis. Although generally assumed price moves are given names, they don’t always perform as expected. The visuals of candlestick charts allow for identifying what investor sentiment is actually doing. The confirmation of a bullish uptrend after bullish signals appeared in the indexes and then have maintained the uptrend by staying above the T line provides much more confirmation for the candlestick investor. The probabilities of a trend are greatly enhanced when using candlestick signals and patterns in conjunction with confirming indicators. Currently, as long as the indexes remain above the T line without experiencing candlestick sell signals, the high probability assumption is that the uptrend remains in progress.

Japanese rice traders observations are incorporated into candlestick patterns. You do not have to be a sophisticated analyst. The premise of candlestick charts is that they reveal the decisions resulting from everybody else’s analysis. This works both in bullish sentiment as illustrated in the BVDA and AAPL charts as well as bearish sentiment illustrated in the NVAX chart. Recognizing candlestick signals and patterns is based upon what human nature is likely to create as a price trend based upon the reoccurring aspects of investor sentiment. Having the ability to analyze the overall market trend allows for common sense trading, establishing positions with strong signals and patterns that correlate with the overall market trend greatly improves the probabilities of being in profitable trades.

Good investing,

The Candlestick Forum Team

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Downtrend in Progress

Is the downtrend being caused by Manchins “NO”? Or is it the new co-vid activity? The great thing about candlestick analysis is that you do not have to be the analyst. You do not have to project what might happen to the market if specific things happen. Candlestick analysis has a great advantage of being able to analyze what everybody else’s analysis is doing to the market. The combination of candlestick signals, candlestick patterns, and the T line produced a very accurate assessment combination.
Simple candlestick scanning techniques allows investors to identify which stock/sectors are going to benefit from situations in which stock/sectors are going to have bearish results from specific situations. A new lockdown would make the stay at home stocks gain bullish perspectives. Retailers may be negatively affected. Candlestick signals and patterns provide a huge advantage for identifying where you want to have your trading funds committed.

Good investing,

The Candlestick Forum Team

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