April 21st Market Wrap-Up

The best option trades are produced by candlestick common sense. The best option trades are produced by candlestick signals confirming candlestick patterns. As illustrated in our recommendation to short SPOT, this successful trade was based upon knowing what to look for coming out of a dumpling top candlestick pattern. Expecting a strong sell signal would confirm a strong downtrend confirmation of the dumpling top. Yesterday, witnessing a bearish kicker signal was a strong sell signal that would instigate a powerful down move based upon a strong downtrend coming out of a dumpling top pattern. Visually recognizing these candlestick indications allow the investor to be not only in high probability trades setups but also in very strong profit trades. Specific signals allow for the identification of a downtrend starting, allowing for profitable put trades to be put in place, followed by signals occurring near a pattern breakout would allow for enhancing profitability by putting on additional put spread trades. This modification of the trading strategy reduces the risk after a price has already moved extensively but still participates in further downside movement with logical leveraged option trades. Join us Saturday, April 23 for a full-day training on how to use the appropriate option strategies for the appropriate candlestick signals and patterns. You will gain valuable insights that will allow you to trade much more successfully.

 

 

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Stephen Bigalow

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High Probability Option Trades April 18th Market Direction

High probability option trades are the function of knowing the direction of the underlying stock with a high degree of probability. High probability options trades are executed when knowing the direction of the overall market and which candlestick patterns will produce the biggest potential price moves. Currently, with the indexes continuing to trade below the T line, the T line rule makes a high probability assumption the downtrend remains in progress. This allows for identifying which down-trending stock charts have the biggest downside potential. Join us Saturday, April 23 for a full day of comprehensive training on applying the correct option trade with the appropriate candlestick signal or pattern. This process allows the candlestick investor to dramatically improve the probabilities of being in a correct trade at the correct time. Utilizing calls and puts and calls spreads and puts spreads dramatically improve an investor’s capabilities of producing bigger percentage returns with mitigated risk. This is not rocket science! This is merely putting the appropriate trading strategies in place. As long as the market indexes do not reveal candlestick reversal signals, after moving down over the past few weeks, puts spreads becomes the logical trading strategy.

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Stephen Bigalow

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High Probability Option trades April 14th Market Wrap-Up

High probability option trades are enhanced by the correct market trend analysis. High probability option trades can be seen in down trending stock positions that have the possibilities of reversing but the downtrend continued when they failed to get back up above the T line. Numerous bearish chart patterns, even though in the oversold condition, reveal the probabilities of continuing lower. These trend conditions allow option traders to move from buying puts to getting better profit probabilities by moving to put spreads. Fortunately, put spreads can be implemented very easily. Most brokerage firms provide easy trade execution of spreads with one click. Join us Saturday, April 23 for a full day training on the appropriate option strategies applied to the appropriate candlestick signals and patterns. Common sense provides much better risk reward factors when using the correct option trade strategy with a corresponding candlestick pattern.
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Currently the market indexes have failed to close above the T line. The T line actually showed the resistance for the NASDAQ and the S&P 500 today. The Dow, after forming a bullish and golfing signal yesterday right at the 50 day moving average had good prospects of confirming a trend reversal but the late day selling closed the Dow back below the T line, making the prospects of further downside very strong.

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April 11th Market Direction

Options trades with candlestick analysis greatly improve the probability factors of being in a profitable trade. Option trades put into place when all the stars are in alignment not only improve the probabilities of being in a correct trade but improve the probabilities of being in a very profitable trade. Step one on any trade utilizes the analysis of the overall market trend. Candlestick signals and patterns produce the initial trade factor by allowing the candlestick investor to be more oriented toward the long side or the short side. Obviously, the recent downtrend was revealed by candlestick sell signals in the indexes in the overbought area. This made scanning for the strong individual stock sell signals better probabilities. Knowing the direction of the market, and the direction of an individual stock price allows for very good option trade setups. However, the mistake most investors make is thinking buying puts or calls is the best strategy. Simple option trading techniques such as credit spreads or debit spreads are usually much better trades strategies. Join us on April 23 for a full-day training on applying the correct option trade strategy with the correct candlestick signal/pattern. The insights that you gain from this type of training dramatically improve your correct trade ratio. Will you always be in a big price move trade? Definitely not, but the probability of being in a big price move is greatly in your favor when utilizing candlestick analysis.

 

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Stephen Bigalow

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April 7th Market Wrap-Up

High probability candlestick trades are easily identified when adding a number of confirming indicators to the visual analysis. High probabilities of candlestick trades are produced when identifying the confirmation of the candlestick signals and patterns. A strong confirmation is witnessing signals and patterns followed by gaps in the confirming direction. Good profit short positions are in progress based upon dumpling tops that were confirmed with gap downs in prices. Candlestick reversal signals, such as the bearish engulfing signal, and a close below the T line is producing good short trades. Putting all the stars in alignment is nothing more than correctly analyzing the overall direction of the markets and then analyzing which stock positions are producing the strongest signals are patterns in conjunction with the overall market direction. The current downtrend has been producing good strong profits in short trades. Everything built into a candlestick chart is merely common sense analysis put into a graphic depiction. Options trading is a good way to maximize profitability. Join us on April 23 for a full-day training on learning the appropriate option strategy to be applied to specific candlestick signals and patterns.

 

 

Chat session tonight at 8 PM ET, revealing the benefits of option spreads. Click here to register.

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Stephen Bigalow

 

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The J-hook pattern produces consistent profits April 4th Market Direction

Today’s bullish trading created candlestick patterns that illustrated the T line is acting as support. The J-hook pattern is one of the most consistently profitable candlestick patterns. It illustrates a continuation of bullish sentiment after some profit-taking. Today, the NASDAQ and the S&P 500 clearly illustrated J-hook pattern setups, using the T line as a support level. Knowing what human nature produces as reoccurring patterns allows the candlestick investor to gain a huge advantage in knowing how to analyze price trend movements. These patterns can be applied to the general market trend as well as individual stock trades. Our daily chat room has many experienced traders that identify the high profit/high probability pattern setups. This allows investors to learn very quickly which trade setups will work most effectively. Numerous J-hook patterns were identified in today’s trading which logically coordinates with the market indexes creating J-hook patterns. The visual aspects of candlestick analysis consistently put the probabilities of being in the correct trade at the correct time. A major benefit of the J-hook pattern is being able to calculate relatively accurately what the magnitude of the next price move will be. Join us for a two-week free trial if you are not yet a member of the candlestick forum chat rooms. You will gain great insights into what moves prices.

 

 

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Stephen Bigalow

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March 31st Market Wrap-Up

Identifying breakouts is much more effective when utilizing the information built into candlestick charts. Identifying breakouts is utilizing the signals and patterns that illustrate a major move coming in investor sentiment. The first analysis each day is the direction of the overall markets. Gap ups in the overbought condition have been identified by Japanese rice traders over hundreds of years as being the alert to start watching for a sell reversal. Where do most people buy? They buy exuberantly at the top! Rule of thumb, witnessing a price gap up in the overbought condition, start looking for candlestick sell signals. There are very logical selling indicators built into candlestick graphics. A close below the previous day open in an overbought condition is a high probability indication of the sellers taking control. That was witnessed in the NASDAQ and the S&P 500 yesterday. The bearish Doji Harami that formed in the Dow produced the alert that if prices opened lower today, the Dow is likely to come back to at least the 200-day moving average.

Knowing the direction of the market allows the candlestick investor to identify the strongest sell signals.RH revealed a bearish best friend signal failure at the 50 days moving average. Utilizing the information built into candlestick signals allows the candlestick investor to gain a huge advantage of knowing not only the direction of a price move with a high degree of probability but also identifying the strongest down moves. Candlestick signals reveal strong breakouts of investor sentiment either in a strong individual candlestick signal or a buildup of a pattern. Join us this evening in our free Thursday night chat session to learn what price moves usually occur after a breakout signal. This is information that you will utilize for the rest of your investment career. Also, utilize our two-week free trial to our chat room that is open all day during trading hours, as well as our stock recommendations that produce a learning process of why specific candlestick signals and patterns work well. Click here to register.

 

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

 

Good Investing,

Stephen Bigalow

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March 28th Market Direction

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March 24th Market Wrap-Up

Candlestick patterns are greatly enhanced when knowing the overall direction of the general market. Today’s positive trading produce further evidence the 50 day moving average was going to act as a support level in the Dow, after a couple days of consolidation at that level. Additional bullish sentiment was illustrated in the NASDAQ, opening positive after a potential candlestick reversal signal. The upward bias of the market makes candlestick patterns more productive. Numerous fry pan bottoms and J-hook patterns are still producing good upside profitability. Knowing what should the expected based upon the visual identification of pattern set ups allows the candlestick investor to participate in profitable trades with a high degree of probability.

The belt holds signal in HYZN creates a much greater prospect of a bullish uptrend continuing with greater speed because sellers have been eliminated. That is what a belt holds signal indicates. This produces better upside prospects because there are less sellers now in the way. Candlestick signals are the creation of investor sentiment producing the same results time after time. The kicker signal is the strongest individual candlestick signal. LOGI can be bought on positive trading tomorrow based upon kicker signal reversal and a close above the 50 day moving average. Learn how to identify a high probability signal and pattern ramifications based upon the results the Japanese rice traders have identified over the last 400 years. Join us this weekend. The candlestick forum two day training is a comprehensive training that will completely alter an investors perspective, learning where the high probability trades set ups are occurring which greatly reduces investor emotions.

 

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

Good Investing,

Stephen Bigalow

 

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March 21st Market Direction

What is a Doji candlestick? A Doji represents indecision between the bulls and the bears! What is a Doji candlestick? It is one of the most prolific candlestick reversal signals. The Doji rule – a price will usually move in the direction of how they open after a Doji. Especially if it occurs in the overbought or oversold condition. Today the indexes form Doji’s at observable resistance levels. The Dow formed a Doji/Harami at the 50 day moving average area. The NASDAQ formed a Doji at the 50 day moving average. The S&P 500 formed a Doji at the 200 day moving average. This makes trend analysis very simple. The Doji rule says if the market starts trading lower after today’s Doji’s, a pullback/downtrend is extremely likely. This would also illustrate the fact that the moving average resistance levels were acting as resistance. Knowing what should result after candlestick signals provides a much more accurate trading platform for the candlestick investor. The Doji, as well as the other 12 major signals, indicate when it is time to buy and when it is time to sell. This is nothing more than the graphics of what is occurring in investor sentiment. Join us this Saturday and Sunday, March 26 and 27th for a full 2-day comprehensive training on what the candlestick signals and patterns illustrate is occurring in investor sentiment. Learn to recognize and understand what is occurring at strong candlestick reversal levels. This will benefit your trading for the rest of your life.

 

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

Good Investing,

Stephen Bigalow

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