Many times it is asked how can you make an evaluation of a market trend when is waffling up and down? That is the answer! The graphics of candlestick charts reveal that it is waffling. That is the evaluation. That clearly illustrates there is no major trend of the market indexes, making the best market strategy to have both long and short positions in the portfolio or trade only very specific strong candlestick breakout patterns or take a break from trading and get refreshed. Simple logic dictates that the analysis of the candlestick charts reveals whether you want to be predominately long, predominately short, both long and short, or stay out of the market until a better trend direction is revealed.

Fortunately for the candlestick investor, the simple scanning techniques for candlestick signals and patterns will provide more trades than most investors will be able to handle on any given day. Having a good supply of trades allows for cultivating for the best trades. Currently, breakouts are still producing good profits as witnessed in NCTY, a bobble breakout. MorningStar signals forming right on the 50 day moving average,ENTX, JYNT. Having the knowledge of what is occurring in investor sentiment based upon candlestick signals and patterns at observable support and resistance levels provides a huge advantage for knowing what the probabilities will be for the trades set up. This is not rocket science.

The summer doldrums are being clearly demonstrated in the Dow, up one day down the next with no direction. The transportation index slowly drifting lower, the NASDAQ supported at the T-line and showing no downward bias. The summer doldrums are probably going to be enhanced this summer with everybody wanting to get out of the house. This does not make for very good trading. However, the major advantage of candlestick patterns is that it provides high probability expectations even though the overall market trend is not doing anything with great resiliency.

Numerous fry pan bottom patterns are working. The kicker signal allows the candlestick investor to take advantage of identifying when a strong reversal is likely to occur. This is demonstrated both on the bullish side, FLXN, as well as on the bearish side LMND. When the market conditions are not providing identifiable investor sentiment, the candlestick signals and patterns in specific stocks allow for a consistent supply of profitable trades.

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

Good investing,

The Candlestick Forum team

Candlestick analysis provides a very powerful indication of the direction of a trend/market. It also provides good evidence of when there is not a trend in progress. Currently, the market indexes are drifting lower, likely the result of the summer doldrums. Investor sentiment and activity is probably going to be more lethargic this summer with numerous investors wanting to get out and about without co-vid restrictions.

This may indicate a lack of bullish sentiment as the candlestick charts are beginning to indicate. This provides a trading environment that would warrant adding short positions to the portfolio. The Dow closed below the T line, the NASDAQ closed below the T line. This produces much greater probabilities that a downtrend is starting. Join us in the chat rooms each day. Many good trades are revealed by candlestick investors that have experience.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

Candlestick charts make analyzing the overall market direction extremely easy, this is a very important factor for establishing positions in the portfolio. However, there is another important factor using candlestick signals and patterns to analyze the overall market trend. It allows the candlestick investor to understand the nature of investor sentiment. The uptrend, with the market indexes staying above the T line, revealed there is very little bearish fear currently in the market. This makes identifying strong power trades easy. Knowing that the kicker signal is one of your strongest candlestick signals, and also knowing that the overall market sentiment is relatively bullish, allows for taking advantage of big percent moves. This was demonstrated in early identification of kicker signals in BTBT and NCTY. Candlestick investors gain a huge advantages by not only recognizing the signals and patterns that are going to produce high probability trade results but also understanding the investor sentiment that creates market movements allows for making excessive profits in chart pattern breakouts. This is making hay while the sun shines! Candlestick analysis consistently puts the probabilities in your favor. If you are having problems making consistent profits, the common sense logic built into candlestick signals and patterns will dramatically improve your trading abilities. Join us at the Candlestick Forum. The information provided on a daily basis in the chat rooms will dramatically improve your trading assessments.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

The reversal signals last week were very apparent. The Dow started showing indecisive trading signals finally confirmed with a close below the T line. Bearish confirmation was also evident with the NASDAQ and the S&P 500 showing sell signals and already trading below the T line. This is not rocket science! These signals allow candlestick investors to start orienting their portfolio from the long side more towards the short side. The NASDAQ is likely to have more downside until it reaches the 50-day moving average. This would imply staying short until you see a level where bullish signals should appear.

Bullish candles are showing back up in specific sectors such as the biotech stocks that are related to co-vid. The new strain is starting to take effect. This was easily identified by simple candlestick scanning techniques. We will be presenting a training session in the near future that identifies when it is time to start selling, with candlestick sell signals closing below the T line or heading for the T-line. Also, it will be easy to identify which signals have the strength to not only be selling but going short.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

The left/right combo, one of your strongest candlestick reversal signals formed in the NASDAQ, followed by a close below the T line is a strong indication there has been a change of investor sentiment. The T-line rule is very simple! The uptrend remains in progress until you see a candlestick sell signal and a close below the T line. Uptrending stocks such as NVDA, SAVA and FSLR are all good examples of when to take profits, witnessing sell signals and closing below the T-line. Utilizing the simple trading rules based upon human nature allows investors to maximize your profitability by knowing when candlestick signals indicate trends are starting and when trends are ending.

Simple scanning techniques identify the best bullish trades and the best of bearish trades. Another sign of when investor sentiment is starting to turn bearish is merely the simple numbers of better bearish trades being identified versus bullish trades. Over the past few weeks, even though the uptrend has been in progress in the market indexes, the nature of the market has been showing profit-taking/selling as it has reached the overbought condition. Simple logic built into candlestick analysis allows investors to anticipate with more accuracy when price movements are about to occur, either bullish or bearish.

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

Good investing,

The Candlestick Forum team

Although the indexes continue to trade higher, there is one natural indication to have safety stops in place. The simple scanning process to find the strong candlestick signals and patterns are revealing much better short positions versus long positions. Better in the sense that there is a greater number of good short patterns developing. The simple logic allows the candlestick investor to be ready to close out long positions on any signs of sell signals/weakness and continue a slow process of adding short positions to the portfolio.

The J-hook pattern indicated in the Dow implies there is still more upside. The NASDAQ has not been able to close below the T line. However, the indexes are now in the overbought condition. This does not necessarily mean there is going to be a trend change, but it makes being more diligent for potential sell signals. When you take advantage of the consistent patterns created by human nature, you allow yourself to be better prepared to take profits and reverse portfolio directions. This continues to put the probabilities in your favor of being in the right direction of the markets.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

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

Good investing,

The Candlestick Forum team

The T line rule is making the trend analysis very easy. The T line creates a very high probability factor. As long as the indexes continue to trade above the T line, the uptrend remains in progress. This simple indicator will dramatically improve your trading by keeping your emotions out of your decisions. Currently, the Dow has formed a J-hook pattern off the 50 day moving average. The NASDAQ continues in an uptrend after forming J-hook patterns using the T line as support. There is a very powerful element that can be viewed graphically on a candlestick chart. The candlestick signals and patterns are the graphic depiction of investor sentiment. The T line is a natural support and resistance level of human nature. When you combine these two elements into your visual analysis, you dramatically improve the probabilities of analyzing a price move correctly. Join us in our chat rooms. Each day candlestick investors are finding high probability trades setups.

The market conditions are providing big profit opportunity. The market itself is not necessarily in a strong uptrend, with each index up one day down the next, opposite of the other indexes. But the fact that there is no change of investor sentiment, bullish confidence continues to build. This allows for breakouts that can be easily identified with candlestick analysis to perform with much greater profitability because there is no bearish sentiment deterrent to keep the strong bullish moves from occurring. The fry pan bottom patterns are performing extremely well. The J-hook patterns are producing high profit trades. Good profits are coming from obvious candlestick pattern breakouts such as SPCE producing a fry pan bottom/J Hook pattern breakout on Friday. The bobble breakout as demonstrated in SQ continues to produce a good trade.

The logic built into candlestick analysis puts investor funds in trades that have extremely high probability result expectations. Additionally the results usually perform with much greater profitability than just merely up trending stocks in an uptrending market. Investor sentiment works the same way time after time. Breakout trades can be anticipated based upon candlestick pattern results. Identifying those trades becomes much easier when utilizing the information in our daily chat room. When you have hundreds of investors in a chat room looking for the same pattern breakouts, it is much more likely that somebody will identify a breakout situation in its early stages. You do not have to be a sophisticated technical analyst to analyze the candlestick signals and patterns that clearly illustrate when there is a major change of investor sentiment. Join us in the chat rooms every day! The information in the room provides more good trades than most investors can handle. This allows for cultivating which trades are going to produce the biggest profits.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team