Strong trade patterns can be identified using candlestick analysis. The strong trade patterns are already analyzed to produce high probability price moves. This is why the Japanese rice traders have identified them. Currently the markets are moving in a sideways mode, likely the results of the summer doldrums. However, simple candlestick scanning techniques allow for the identification of strong trade patterns both on the bullish side or the bearish side. Numerous J-hook patterns and bobble breakouts have been identified. The results of these trade set ups not only produce a relatively high probability the trade is moving in the right direction, but also with a strong price move. Crude oil dropped by nine dollars today, creating a bearish J-hook pattern. This makes scanning crude oil stocks to identify the strongest bearish signals and patterns. When the market direction is lethargic, not moving in one direction or the other with great resiliency, having both long and short positions in a trade portfolio is prudent. The strong trade patterns create high probability trade expectations.

Candlestick sell signals in the indexes revealed the downtrend of the markets were continuing. Candlestick sell signals, when revealed at observable technical levels, enhance the probabilities the sellers are in control. The indexes formed evening star signals that showed sellers were taking control at the 34 EMA. The following selloff has brought all the indexes back below the T line, implying the downtrend remains in progress. This basic analysis allows investors to analyze which bearish charts will have the most powerful down move during a downtrend. Candlestick analysis provides a much more clear analytical process of whether the overall market trend is bullish or bearish. With that observation, identifying the strongest bearish charts produces much greater profitability by being in the strong bearish charts versus just merely down trending charts in a down trending market. Learn the 12 major candlestick signals and you dramatically improve your ability to analyze price movements.

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Good Investing,

Stephen Bigalow

The best trades are found by using candlestick signals common sense. The best trades apply high probability signals in conjunction with confirming indicators. The indexes closed above the T line on Friday. Today was obviously a consolidation day. However, as long as the indexes are now trading above the T line, the assumption is the uptrend is in progress. Candlestick analysis allows investors to easily identify which trades will be the best trades during this current uptrend. Many stock prices will rise during an uptrending market. As a candlestick investor, we want to identify which stock prices are going to have the strongest price move during the uptrend. The Doji allows for the identification of many strong price moves. The best friend, the Doji sandwich, the double Doji setup are all excellent entry trades. Take advantage of the information built into candlestick signals. They not only put you in the right direction at the right time, but they also allow you to get into trades that are going to perform much better than the average uptrending price move.

Strong candlestick patterns can be enhanced when utilizing confirming indicators. The strong candlestick patterns that are occurring in this market consolidation are the J-hook patterns and the scoop patterns. The expected results of these patterns not only produce high probabilities of moving in the correct direction but also producing strong profit moves. The NASDAQ, after demonstrating candlestick reversal signals over the past few trading days has also produced bullish confirmation by closing above the T line today. Although the Dow and the S&P 500 are trading positive, they need more bullish sentiment to close them above the T line. The visual aspects of candlestick analysis make analyzing the market trend as well as confirming stock patterns much more clear as far as expected results. The confirmation of specific candlestick pattern set ups allow for much more accurate daytrading/swing trading entry strategies. Join us this Saturday, June 25 for a full day training on recognizing high probability daytrade set ups as well as utilizing the intraday charts to maximize the profits of a daytrade. Join us, you will gain insights that will dramatically improve your analysis of consistent patterns human nature produces.

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

Good Investing,

Stephen Bigalow

High probability trades are easily identified using candlestick signal results. A common question is when you have so many good bullish reversal signals on any given day, how do you pick the best trades. High probability trades are based upon candlestick signal and pattern expectations. The inverted hammer signal provides a 95% or greater probability an uptrend is in progress if it opens positive and trades positive after the inverted hammer signal. Pattern breakouts also provides two major benefits. First, a high probability of the direction of the next move and secondly, a strong move is expected. This allows the candlestick investor to constantly cultivate their portfolio positions to be in the best possible/most profitable trade set ups. This process allows the candlestick investor to constantly improve the probabilities of profitable trades. Join us Saturday, June 25 for a full day training on daytrading set ups that produce good expected results. This is not only good for daytrading but also for fine-tuning swing trading entries. Join us, you will get a lot more information than you expect

High probability signals produce very accurate trend analysis. High probability signals such as the double Doji and the bearish kicker signal were demonstrated in the Dow and the NASDAQ, indicating the downtrend remains in progress. It is not unusual to see strong whipsaw action during Fed announcements. However, witnessing the gap down from yesterday’s trading the next day merely indicates the knee-jerk reaction of yesterday’s trading was then followed by the reality that raising interest rates didn’t magically change the overall scenario of economic conditions. Further bearish confirmation was the fact that all the market indexes around the world were selling off. The candlestick investor can trade with much more confidence knowing that bearish candlestick signals is confirming the obvious downtrend. There are numerous candlestick signals and patterns that produce very high probability trade results. Knowing these trade set ups allows for very profitable/high probability daytrade set ups. Join us Saturday, June 25 for a full day daytrading training that visually recognizes when a high probability trade is about to occur. You will get much more information than you anticipate.

The strongest bearish trades are easily identified with candlestick analysis. The strongest bearish trades become highly profitable when able to accurately evaluate the overall market direction and then identify the strongest bearish candlestick signals in individual stock charts. Bearish Best Friend signals and bearish Kicker signals can produce very profitable short positions as well as put trades and put spreads. The simple candlestick scanning techniques allow investors to identify which stocks are being sold with the greatest bearish force. Simple visual analysis improves the prospects of a bearish trade when the signals occur at major resistance levels. Knowing the expectations of candlestick signals and patterns also produce a self-induced indicator. If you wake up in the morning and feel anxious about your portfolio/trade positions, it means you are probably positioned incorrectly based on what the candlestick market trend indicators represent. If you wake up in the morning and you feel very comfortable with your existing positions, you have utilized the information in the candlestick charts, dramatically reducing the emotional expectations of what you hope would be occurring. The Japanese rice traders have a very simple analysis. Let the market tell you what the market is doing! That will consistently put you in the correct trades with a high probability.

Candlestick power trades are easy to identify. Candlestick power trades merely put all the stars in alignment. The first assessment is the direction of the market. After two weeks of indecisive trading, the indexes showed what the decision was after the indecisive trading. Today the indexes traded lower, closing below the sideways channel and below the T line. This produces much stronger probabilities that wave three to the downside is in progress. However, the CPI report tomorrow is going to probably affect the market trend one way or the other. Currently, there are a number of bearish charts that are not merely showing a downtrend, but candlestick signals show which downtrends will have the most power. Knowing what each individual candlestick signal illustrates allows the candlestick investor to take advantage of the power trades that are correlating with the overall market. This allows for accurate and profitable stock trades as well as ultimate timing for option strategies.

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

Good Investing,

Stephen Bigalow.

Profitable candlestick patterns have a dual benefit. Profitable candlestick patterns are easily visually recognized and they produce a high probability of expected results. This is to the fact that investor sentiment works the same way time after time. The strongest individual candlestick signal is the kicker signal, revealing a dramatic change of investor sentiment. Profitable candlestick patterns, such as the fry pan bottom, or more compelling, the classic pattern, a fry pan bottom followed by a J-hook pattern, produce high probabilities of the expected price move as well as a substantial profit result. Analyzing candlestick charts allow investors to assess a price move with a much higher degree of accuracy because of the reoccurring nature of investor sentiment. Currently, the lack of direction of the overall market provides a specific trading strategy for candlestick investors. Both long and short positions should be established in the portfolio until the market shows a definite trend movement. The direction of the trend is much more easily assessed when using the graphics of candlestick signals. Today, the Dow failed at a resistance level and pulled back into the sideways trading range. A close back below the T-line in the major indexes would indicate a wave three to the downside.

High-profit trades are easily identified using candlestick signals. High-profit trades are the result of identifying when there has been a dramatic change in investor sentiment. The kicker signal and the best friend signal demonstrate powerful sentiment coming into a price move. The major benefit of candlestick signals and patterns is the expected results coming out of these trade setups.

Most investors are afraid to chase a price move. Knowing what the results are from strong candlestick signals allows an investor to move into a trade with confidence that more price movement in that direction is expected. This produces a very comfortable trading platform. Utilizing candlestick signals and patterns create trade setups that have a high probability of expected results. Learn how to use the probability factors of candlestick analysis and you do not have to depend on anybody’s opinion or projections. You gain control of your own investment decision-making.

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

Good Investing,

Stephen Bigalow.