When is it time to be predominately long? When is it time to be predominately short? When is it time to have both long and short positions in the portfolio? That is exactly what candlestick charts reveal. An investor can much more accurately assess what the overall market trend is doing, utilizing the Dow, the NASDAQ and the S&P 500. Our recent recommendations have been having both long and short positions in the portfolio. That was based upon simple visual analysis of the different indexes, the Dow showed sell signals and continue to trade below the T line. The NASDAQ showed buy signals and continued to trade above the T line. The evaluation changes dramatically when candlestick sell signals are witnessed in all the indexes. This reveals a major change of investor sentiment. There are other subtle indications illustrated on candlestick charts that portend a change of investor sentiment. Join us Saturday November 27th at 10 AM ET for a free candlestick mini spotlight training on identifying when a major uptrend may be changing. Click here to register for free.

Exuberance was witnessed in a number of bullish stock chart patterns today. The shooting star signal formed in AAPL after gapping up in the overbought condition. AMZN created an evening star type signal showing a failure to move higher. RBLX gapped up in the overbought condition and immediately started trading lower. Candlestick signals and logic allow investors to take profits at the appropriate times. Short positions continue to produce good profitability by being in the right positions at the correct time.

Members Stock Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

Candlestick analysis allows the 2+2 analysis that adds multiple high probability results in a trend evaluation. Currently, the NASDAQ and the S&P 500 are in uptrends, using the T line as a support level. The Dow sold off hard today but bounced back up after hitting the 34 EMA. Now the Doji rule can be put into effect, the trends will usually move in the direction of how prices open after a Doji. The simple rules allow investors to get a much more accurate assessment of the overall market trend, allowing the appropriate trades to be put in place based upon their individual chart patterns.

The fry pan bottom pattern illustrates the buildup of investor sentiment. The patterns provide three major benefits. First, it illustrates the direction of price movement with a high degree of accuracy. Second, the magnitude of the price move is going to be much greater than merely up trending charts. And finally, because candlestick patterns are a buildup of investor sentiment that can be easily recognized, a reversal in the overall market will not usually immediately affect a pattern that has been building up, allowing for more time to get out of a trade profitably. Candlestick signals allow investors to immediately evaluate what the investor sentiment is doing at technical levels that everybody else is watching.

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

Good investing,

The Candlestick Forum team

Even when the markets are not showing any decisive direction, simple candlestick scans can identify which sectors are producing the strongest trends for long positions or the weakest trends for short positions. As illustrated, good strength has been coming back into the electric vehicle sector for the past few weeks. This allows investors to be establishing positions in stock/sectors that produce the highest probabilities of producing profitable trades. This is not rocket science! This is merely identifying the candlestick signals and patterns the Japanese rice traders identified over the last 400 years. Human nature works the same way time after time. Not only does candlestick analysis identify when it is time to be buying, it also identifies when it is time to take profits. There are only six bullish candlestick signals and six bearish candlestick signals that need to be identified. These are considered the 12 major signals. They produce 99.9% of the profitable trades. This keeps from having to learn all 50 or 60 signals that don’t occur often enough to expand mental time and energy to learn them.

The frypan bottom pattern is being witnessed in the electric vehicle sector. A pattern, in conjunction with the T line creates very good probability analysis. The T line/fry pan bottom rule – you can stay long after witnessing a frypan bottom breakout as long as price does not close back below the T line. These are the simple trading rules utilizing the affects of human nature that allow investors to keep their emotions out of their trading decisions. The candlestick signals and patterns have expected results. The T line can confirm the results. This combination allows investors to gain control of their own investment perspectives, dramatically reducing emotional decisions.

Good investing,

The Candlestick Forum Team

The T-line factor – a candlestick buy signal and a close above the T-line produces extremely high probabilities an uptrend is in progress. A candlestick sell signal and a close below the T-line produce extremely strong probabilities a downtrend is in progress. This is a simple analysis that can be easily confirmed. Go back through charts and see what the trends do with a high degree of probability above and below the T line. The indexes closed below the T line yesterday. This was after sell signals had formed during the prior days. Today, note how the Dow traded higher initially but resisted right at the T line and continue to trade lower. The NASDAQ and the S&P 500 opened at the T line and traded lower from there. Even though the NASDAQ was up 81 points today, the candlestick investor can visually evaluate there was no buying after the initial open. This information provides huge advantages for correctly analyzing the market trend or stock price trends.

The T line also reveals when a stock/sector is continuing its trend. As witnessed in the electric vehicle sector, note how numerous stocks in that sector use the T line as support and continue their uptrend. When you combine the analysis of a candlestick pattern and use the T line to show confirmation of that pattern, you dramatically reduce your emotional trading. Join us this weekend for the two day Triple T training, examining how the T line greatly enhances your price trend analysis. Expect to be brain fried and butt sore at the end of the training, but you will be able to visually recognize high probability trades set ups that you can use for the rest of your investment career.

Chat session tonight at 8 PM ET, keeping your emotions out of your trading. Click here to register.

Good investing,

The Candlestick Forum team

Candlestick analysis has the capability of dramatically improving the probabilities of anticipating what investor sentiment is about to do, or is doing! Being able to recognize the strong candlestick signals and patterns allows an investor to make much more accurate assessment as to which stock/sectors are getting bullish or bearish sentiment. The analysis is then further enhanced by identifying which stocks in a sector are producing the strongest signals. This is putting all the stars in alignment. Recognizing a pattern set up and knowing what the results of candlestick signals will produce at breakout levels allows for the exact entry points in high profit potential trades.

The confirmation of a pattern or signal is also enhanced by using the T line, a natural support and resistance level of human nature. An investors analytical ability is greatly improved when recognizing what investor sentiment is doing at observable technical levels. Currently, the markets are overbought and illustrating indecisive trading. This creates an alert to be prepared to start taking profits and/or adding short positions to the portfolio. Which positions do you want to stay long when the market is in overbought area? The candlestick signals and patterns that are producing excessively strong bullish or bearish trend signals. You do not have to be a technical analyst to benefit from the visual aspects of candlestick signals.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

Often asked questions – the markets are in overbought conditions, should we be taking profits? The markets are at all-time highs, should we be moving back to cash? These questions become non-relevant when utilizing the information provided on candlestick charts. Candlestick investors have a huge advantage by being able to visually evaluate what is occurring in investor sentiment, no matter where the markets are trading. The fact that the markets continue higher at all-time highs provides the correct trading criteria. The T line rule – as long as a trading entity continues to trade above the T line without experiencing a candlestick sell signal, the probability factor indicates the uptrend remains in progress. This is an important element for keeping your emotions out of your trading. It eliminates the flawed investing process of taking profits just because there are profits.

The T-line provides an extremely high probability evaluation factor that indicates when it is time to take profits. The further away you move from the T line, the higher the probability price will come back to test the T line. This makes witnessing candlestick reversal signals excessively away from the T line much more relevant. Join us on November 13 and 14th for a two-day full comprehensive training on identifying what human nature normally does. Candlestick analysis produces a trading strategy that utilizes the common sense built into identifying what is occurring in human nature.

Chat session tonight at 7pm central. Click here to register.

Good investing,

The Candlestick Forum team

The results of candlestick signals and patterns are dramatically enhanced when utilizing the T line. This indicator acts like a natural support and resistance level of human nature. It greatly enhances profitability by indicating the exact time to enter a trade, continue to maintain a trade, and when to close out a trade. It acts like a natural support and resistance level of human nature.

The electric vehicle sector is currently exhibiting breakouts of fry pan bottom’s. This is significant in that the whole sector has been witnessed a buildup of investor sentiment as illustrated in the trajectory of the fry pan bottom pattern. The market indexes are in overbought conditions. However, they continue to move slowly higher. The advantage the candlestick investor has is being able to identify which stocks and sectors are maintaining the strongest bullish investor sentiment. This is demonstrated in strong patterns producing strong results in the electric vehicle sector as well as the biotech sector. The candlestick investor also has the capability of identifying sectors that are in a downtrend, when the market is an overall uptrend, to modify the risk exposure. The prudent portfolio strategy currently is remaining predominately strong as long as prices remain above the T line as well as having a few short positions in the portfolio, maintained as long as they stay below the T line. Join us November 13 and 14th for a full two day training on how to utilize the combination of candlestick signals and patterns with the T line to dramatically enhance your profitability.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

An impressive aspect of candlestick analysis is not only being able to identify pattern setups, but also allowing you to pinpoint the exact timing to get into successful trades. As illustrated in some of the frypan bottom breakouts, candlestick signals reveal the confirmation of the pattern breakout at the exact time to enter the trade.LCID was clearly identified as a breakout based upon a trend kicker signal. This is a 2+2 analysis, identifying a strong bullish signal at a major breakout level. Rhetorical question – do all breakout moves produce huge profits? Definitely not, but utilizing candlestick signals at pattern breakout levels dramatically improves the probabilities of being in a price move with significant profits.

The confirmation of patterns are greatly enhanced utilizing the T line. This trend confirmation indicator dramatically improves the probabilities for entering a profitable trade, maintaining a profitable trade, and illustrating when it is time to close out a trade. Most investors have the problem of having some of their positions trading up while others are trading down, producing a mediocre result. Candlestick analysis alleviates that scenario. Combining the candlestick signals and patterns with the T line dramatically improves the probabilities that a vast majority of portfolio trades will be moving in the correct direction, some with big profit results.

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

Good investing,

The Candlestick Forum team

A major advantage of candlestick analysis is that it allows the top-ranked signals and patterns to illustrate which price moves are likely to have the highest probability of moving in the right direction and produce an extremely profitable price move. Although all boats will likely rise in a rising tide, the top-ranked signals and patterns identify the boats that are going to arise much faster. The most powerful and frequent top-ranked signal is the best friend signal, a Doji followed by a gap up. Today’s trading revealed a number of good trade setups based upon the best friend signal. Identifying the signals allows investors to participate in the strongest trades when an up-trending market is in progress.

Additionally, the identification of a top-ranked signal can also reveal the strong candlestick patterns that are confirming. This is what we call the 2+2 analysis. The more aspects we can put into our visual analysis, the higher the probability were going to be in a strong profitable trade. Currently, the market trend does not indicate any reversal signals. However, the overbought conditions continue to make it imperative to keep safety stops in place.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

Analyzing the market trend is relatively easy after the reversal has been identified. As long as the trend remains above the T line, the uptrend remains in progress. Now the biggest factor is identifying which trades will produce the greatest profits during the uptrend. All boats will rise in a rising tide. We are looking for the boats that are going to rise a lot faster. There are approximately 18 combination of candlestick signals and patterns that produce high probability/high profit results. Once you learn the characteristics of a strong Top Ranked candlestick signal or pattern, you gain a huge advantage for consistently putting high profit trades in your portfolio.

Simple logic – The best friend signal is an extremely high-profit trade setup. It is a Doji, illustrating indecision, followed by a gap up in price which definitely reveals what investor sentiment is doing after the indecision. This was illustrated in our recent recommendations on BEKE and CANO. Prices do not move based upon fundamentals! Prices move based upon the perception of fundamentals. This is exactly what the graphics of candlesticks analysis provides, a clear indication of what is occurring in investor sentiment. Join us this Saturday for a full day of training. You will learn to identify the strongest signals and learn how to utilize simple options strategies to maximize your profitability of that trade. But the most important aspect of this training is orienting your mental perspective on how to trade effectively knowing what human nature normally produces. Click here for more information.

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

Good investing,

The Candlestick Forum team