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

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

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

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

40 years plus of investment background produces expectations after major announcements. The feds reported they were going to start raising interest rates. The knee-jerk reaction is that that is the right thing to do. But reality always indicates that when interest rates are rising, the stock market sells off. This provided the warning did not jump in excessively until there was confirmation of whether yesterday’s trading was a knee-jerk reaction or a full-fledged change of investor sentiment. As illustrated in today’s trading, the NASDAQ and the S&P 500 opened positive and then immediately started selling off. Although the Dow traded positive most of the day, the bearish sentiment became more evident when the bullish candle started turning bearish. The T line also remains a major factor. And obvious observation is witnessing numerous down trending stocks that showed a reversal bounce yesterday afternoon experienced resistance at the T-line today and started trading lower.The strength of the selling in the NASDAQ provides a good indication that the existing downtrend is continuing. Sectors such as the airline sector showed a bounce yesterday but individual stocks could not get up above the T-line, then started selling off again today. When the market goes into an indecisive whipsaw action, very short-term trading becomes the logical strategy.

Join us Saturday, December 18 for a full day daytrading and swing trading entry strategies that put you in the right trade direction at the ultimate entry point. This information is viable every single day for identifying quick daytrade profits as well as the appropriate swing trade directions. This training not only provides the visual alerts for good trades but also produces a strong mental perspective of what price movements are likely to occur when the signals and patterns set up in alignment. Join us, you will not be disappointed in the amount of visual analysis you will receive.

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

Good investing,

The Candlestick Forum Team

The hard selling today revealed a new trend analysis. Although the Dow did not have an actual candlestick reversal signal, the hard selling in conjunction with the NASDAQ closing below the T line reveal the lack of any bullish pressure in the market trend. Another indicator that implies the bears are taking control is the simple quantitative results doing candlestick scans. When the bearish signals are revealing much better trades than bullish signals, candlestick logic indicates the bears are likely to be taking control. As observed on numerous charts, recent uptrends failed at the T line and started back down. This makes having the portfolio more oriented toward the short side a logical strategy.

Join us this Saturday to apply the logic built into candlestick signals to take advantage of optimal entries for day trades as well as swing trades. There are market conditions when buying trending positions is more logical. And there are times when having the ability to find strong day trades is more viable when the market is not providing consistent trending. Join us this Saturday for a full candlestick forum training on daytrade entries. You will gain valuable insights that will improve all your trade entry strategies. Click here for more info.

Good investing,

The Candlestick Forum Team

Although the market indexes revealed a consolidation/profit-taking day, the NASDAQ sold off with excessive force. The Dow traded flat and the transportation index traded higher. But the NASDAQ sold off all the way back to the T-line. Today’s trading because the alert for the market environment still be in very stock/sector-specific. High tech stocks sold off while homebuilder stocks continued higher. These market environments are what make candlestick scans more relevant. Simple scanning techniques can pinpoint which sectors are trading bullish while identifying which sectors are selling off.

The T-line rule remains a very relevant trend indicator. Candlestick signals and patterns allow for much more clarity as to when to take profits. Join us tonight in our free chat room session concentrating on the indicators that allow for optimal profit-taking.

This past weekend we presented the optimal entry points for daytrading as well as swing trading. This was a Mini spotlight training that demonstrated a few extremely high probability daytrade setups. Mark your calendars! December 18 will be a full-day training for the optimal daytrade/swing trade entries. This will include approximately seven candlestick trade set ups that produce high probability profitable day trade results. Click here to register.

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

Good investing,

The Candlestick Forum Team

The market reversal was easily identified with the Doji sandwich set up. A positive open after Friday’s Doji made the trend analysis relatively simple. A positive open today with likely have the same magnitude candle is what occurred on Thursday prior to the Doji. This information allows the candlestick investor to immediately enter trades that were showing the same pattern set ups. Numerous Doji sandwiches occurred today creating excellent entry points for both day traders as well as swing traders. The Dow forming a Doji sandwich after it formed a bullish Harami last week right on the 200 day moving average provided very good evidence the bulls were back in control, or at least the bearish sentiment had disappeared.

Having the ability to recognize strong reversal signals allows for entering trades at the ultimate entry points. As illustrated in the home builders sector, numerous Doji sandwich signals also indicated strong J-hook pattern expectations. This allows for recognizing the next price move magnitude, wave one of a J-hook pattern will usually equal wave three. Recognizing today’s strength, forming bullish signals in the market indexes also produced the appropriate times for taking good profits on short positions that have been working for the past few weeks. Not only to candlestick signals tell you when it’s time to buy a position, they also accurately indicate when it is time to take profits.

Good investing,

The Candlestick Forum Team

A bullish Harami formed in the Dow today at the 200 days moving average in the oversold condition. This produces a high probability reversal setup. Positive trading tomorrow would confirm the bullish Harami. The first target would be to see what type of signal occurs at the T line. These market conditions produce the trading environment that allows for profitable trades both on the long side and the short side. The ultimate indicator is the T line. As illustrated in our recommendation to short AFRM, visually identifying the blue ice failure pattern produces an extremely high probability the downtrend could likely move to the 200-day moving average. Utilizing high probability trade setups, such as flutter kicker signals, trend kicker signals, and Doji sandwiches allows for excellent day trade and swing trade entry points. Join us this Saturday, December 4 for a Mini spotlight training on daytrade entries. This information allows investors to be prepared for high probability profitable trades. $27 for members, $47 for nonmembers. Click here for more information.

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

Good investing,

The Candlestick Forum Team

Candlestick analysis provides a high probability visual analysis of when to be buying or when to be selling. Candlestick analysis also reveals when sitting in cash or not aggressively trading is more prudent. That is illustrated in today’s trading in the Dow and the other indexes. Although the Dow has formed a bullish Harami after Friday’s big selloff, stochastics are still heading lower and the indexes continue to close below the T line. This means more information is required. Knowing what direction the overall market is moving is a big part of trading successfully.

The correct trend analysis also greatly enhances the probabilities of day trade entries and swing trade entries. Join us this Saturday, December 4 for a candlestick forum mini spotlight day trading session. Learn to recognize the candlestick signals in the appropriate market conditions that produce high probability profitable results. Click here to register.

Good investing,

The Candlestick Forum Team