Candlestick trade setups become much more effective when knowing what the overall market trend is doing. Candlestick trade setups are based upon what occurs in human nature time after time. Learning the strong candlestick signals and patterns allows an investor to participate in the high probability trades. The uptrend in the market indexes remains in progress but with the expectation of potential profit-taking back to the T line. This knowledge allows an investor to enter trades or hold off from entering trades based on how the indexes open tomorrow. It’s this evaluation that allows for entering high-profit trades at the appropriate times. Identifying the strong pattern breakouts allows for entering trades that will likely have strong price movements. You do not have to be a sophisticated technical analyst to utilize candlestick patterns successfully.

Market trend analysis becomes much more accurate using candlestick indicators. Market trend analysis is based upon what is occurring in investor sentiment. Candlestick analysis is the graphic depiction of investor sentiment. The market indexes have been in a downtrend with bullish signal bounces along the way. However, simple candlestick indicators allow an investor to see whether that reversal is being confirmed or if the downtrend remains in progress. This week, the Dow has produced candlestick reversal signals and confirmed indications the bulls have taken control. This is a combination of candlestick signals with price confirming above the T line and witnessing the 3T-line now trading up above the T line. Knowing the little nuances that make for accurate market trend analysis allows an investor to participate in individual stock trades that have high profit/high probability results. The lithium mining companies are producing good consistent uptrends, even though the market is just recently reversed. Also, there are high probability breakout/daytrade set ups that are greatly enhanced when knowing the direction of the overall market. Join us tonight for our Thursday night session identifying the high probability day trades.

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Stephen Bigalow

The market trend is in a transition stage. Today’s positive trading in the indexes provided the possibility of a market trend reversal. However, the full confirmation of a change of investor sentiment requires witnessing candlestick reversal signals in the indexes and a close above the T line. As illustrated, potential reversals have occurred over the past few weeks with candlestick buy signals and closes above the T line, but they did not confirm the signal the next day, closing the indexes back below the T line. This is very important for analyzing what is occurring in investor sentiment. These market conditions allow for analyzing individual chart patterns to recognize which down trending stocks remain in progress and which stocks have produced bullish confirmation. This is what puts the probabilities greatly in the candlestick investors favor.

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Stephen Bigalow

Option put spreads appear to be the best strategy in these market conditions. The indexes continue to trade lower, staying below the T-line. Option put spreads allow for taking advantage of continued down trending stock positions even after extended down moves. All the indexes currently are trading below the T line and have not shown any evidence of candlestick reversal signals. The trading strategy remains the same, stay predominately short but there are some good bullish sectors in progress. The lithium mining stocks are trading stronger and the energy stocks continue their uptrend. This allows investors to have both long and short positions in the portfolio.

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Stephen Bigalow.

The market trend remains easily identifiable based upon candlestick analysis. A change of market trend requires a bullish reversal signal and a close above the T line. Friday, the Dow illustrated a MorningStar signal, producing the potential of a market reversal. However, it needed to trade positive today and close above the T line, which obviously it did not do. The NASDAQ and the S&P 500 also traded lower, failing to close above the T line. This is important because a market trend can be analyzed with an extremely high degree of probability based upon the T line rule. Although the downtrend remains in progress, currently there is evidence of some basing/buying. These market conditions prepare the candlestick investor to be looking for long positions while maintaining short positions that have not produced by signals and closed above the T line. This simple analysis based upon the probabilities of human nature allow your investment abilities to be greatly enhanced by simple trend analysis.

Timing of the market is greatly enhanced by using candlestick signals at appropriate technical levels. Timing the market incorporates candlestick buy signals or sell signals in the overbought or oversold condition at levels everybody else is watching. The current downtrend of the indexes remains in progress after witnessing sell signals a few weeks back at major moving average resistance levels. The trend analysis becomes simplified using the T line rule, the downtrend remains in progress as long as the indexes do not illustrate buy signals and a close back up above the T line. Currently, numerous short position recommendations are producing very good profits because of candlestick sell signals and patterns. The J-hook pattern produces a high probability of expected results. This Saturday, May 14, the candlestick forum will be presenting a Mini spotlight training on the three kicker signal formations. Candlestick logic – if you witness a strong candlestick buy signal or sell signal that will confirm a candlestick pattern, you dramatically improve the probabilities of being in the right trade at the right time. Join us this Saturday, these one-hour – two-hour training sessions provide an immense amount of information. Click here to register.

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Good Investing,

Stephen Bigalow

Keeping your emotions out of your trading is much easier using candlestick analysis. Keeping your emotions out of your trading merely requires identifying reversal signals and then using the T line as your trend tool. The T line rule is very simple! If you witness a candlestick buy signal and a close above the T line, assume the uptrend remains in progress until you see a candlestick sell signal and a close below the T line. If you see a candlestick sell signal and a close below the T line, assume your downtrend remains in progress until you see a candlestick buy signal and a close above the T line. 2+2 analysis is merely analyzing the direction of the market indexes using the T line and then executing trades that are also trading in the same direction. You can see how the T line has been extremely effective for down trending stocks such as CVNA that has traded from $375 down to $55 because it has consistently stayed below the T line. Candlestick analysis allows you to put all the probabilities in your favor based upon simple trend analysis combinations. If you become convinced that prices do not move based upon fundamentals, that prices move based upon the perception of fundamentals, you can drastically improve your trading abilities by identifying strong price moves with high probability expectations and continue to keep your emotions out of your trading decisions. Take advantage of our two week free trial. This will give you the opportunity to see the common sense logic that moves prices.http://www.stephenbigalow.com/2-week-trial

When to take profits is much more clearly defined using candlestick analysis. When to take profits is based upon witnessing investor sentiment changing. Currently, the market trend is bearish based upon the indexes continuing to trade below the T line. However, today the Dow and S&P 500 form Doji’s in the oversold area, the NASDAQ formed a bullish Harami. The probabilities of a bullish reversal or a bullish bounce is greatly enhanced based upon how the premarket futures illustrate where the market indexes will open tomorrow. Remember the Doji rule, a trend will usually move in the direction of how they open after a Doji. This becomes more relevant when the training is in the oversold or overbought condition. The graphics of candlestick signals and patterns reveal when it is time to take profits in short positions even though there are not buy signals and a close above the T line. The bullish signals in a downtrend, especially in the oversold condition, illustrate when investor sentiment is changing

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Stephen Bigalow

Market reversal? Today the indexes produced MorningStar signals, one of the 12 major reversal signals. The market reversal still requires confirmation with positive trading tomorrow. Positive trading would confirm the MorningStar signal and indicate the T line is not going to act as resistance anymore. However, it will be very important to see what the premarket futures reveal as far as a reversal is concerned. A lower open would merely indicate today’s positive trading was a bounce during a downtrend. There remains some strong sectors in these market conditions. Crude oil appears like it will be trying to break out of a wedge formation. There are numerous J-hook patterns forming in oil stocks. It is this type of accumulative analysis that allows the candlestick investor to be in high probability trades a good percentage of the time. Join us this Saturday for a free multi-speaker event. These events allow investors to view numerous trading strategies all at one time. And investor can use these sessions to see which trading strategy or which combination of trading strategies best fit their trading nature. Join us, at 10 o’clock Saturday, it is good free information. Click here to register.

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Stephen Bigalow

Option trade high probability entry strategies are greatly enhanced when using candlestick analysis. Option trade high probability entry strategies are the combination of candlestick signals confirming pattern breakouts. The overall market trend is still bearish although it traded positive today. The downtrend remains in progress as long as the indexes continue to close below the T line. However, it is not unusual to see a bounce back up to the T line during a downtrend. This allows investors to be prepared for high probability entries based upon specific bullish or bearish patterns developing. Witnessing the premarket futures indicating a lower open tomorrow would be enhanced evidence dumpling top patterns would still be in progress. At these levels, buying puts spreads is much more feasible than buying puts outright. A positive open would indicate the probabilities of a few days bounce back up to the T line levels. This also allows for high probability option trade entries. Utilizing candlestick analysis allows an investor to get much more clarity as to which direction a price/market trend will move based upon the expected results of candlestick signals and patterns.

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow