The market uptrend continues to be confirmed by the fact that the indexes are staying above the T line. Today all the major indexes closed at all-time highs. This is producing confidence in the bullish sentiment that is allowing candlestick patterns to perform excessively well, without any fear of bearish sentiment. The J-hook patterns have produced some very good profits during the past few weeks. The fry pan bottom breakouts have also produced large profitability. The candlestick investor has the advantage of simple scanning techniques that allow for identifying which patterns are setting up and are at breakout levels.

BLNK and FCEL have broken out of wedge formation’s with strong candlestick buy signals. This implies they have the next wave to the upside. The fry pan bottom breakout as illustrated in SLDB indicates when there is new powerful investor sentiment coming into a price trend. Identifying patterns produces the visual opportunity to get into a strong trade at the optimal entry levels. Once entering the trade, the prospects of investor sentiment producing strong profits is greatly enhanced. The aspects of candlestick analysis produces a trading strategy that allows investors to consistently put the probabilities in their favor as far as being in a profitable trade at the correct time. As long as the market indexes continue to trade above the T line, the assumption is investor sentiment remains bullish. The longer bullish sentiment continues, the greater the prospects for candlestick pattern breakouts to produce big price moves.

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Good investing,

The Candlestick Forum team.

The Dow produced a more compelling reversal signal today. After trading higher and resisting at the upper resistance level, the selling started and brought the Dow back down through the T line and created a bearish left/right combo. This would imply higher probabilities that more selling is about to occur. However, although the probabilities favor lower trading, the nature of the market, over the past month, has been indecisive, up one day, down the next. It will be important to see what the premarket futures illustrate as far as how the markets will open tomorrow. Although the NASDAQ was trading higher today, it closed at the lower end of its trading range, creating a Doji type signal. The transportation index traded much lower. This combination of signals produce more evidence of the bears taking control.

The J-hook pattern remains the predominant pattern in these market conditions. Last week the J-hook pattern produce good profits in the oil stocks. Currently, numerous J-hook patterns are forming in biotech stocks. The indecisive nature of the overall market trend continues to make price movements very sector specific. Some sectors are going to be trading stronger while other sectors will be trading lower. This can be easily identified with simple scanning techniques for candlestick patterns. The patterns can also point out which trading stocks have the best upside potential’s, such as TSLA in the process of a J-hook pattern set up. NFLX is in the process of forming a classic pattern, a fry pan bottom pattern followed by a J-hook pattern. Take advantage of the patterns. They illustrate not only a high probability of the direction of a price move but also have the advantage of producing very strong profit moves. This is what provides huge advantages for the candlestick investor.

Chat session tonight at 8 PM ET, identifying the best sectors.

Good investing,

The Candlestick Forum team

The market direction is still indecisive. It has been that way in the Dow for the last three weeks. However, the candlestick investor has the advantage of being able to scan for the strongest sectors as well as the weakest sectors. This is beneficial for having both long and short positions established in the portfolio when there is no decisive market direction. Currently, good bullish chart patterns are identified in the oil stocks APA, OXY , AROC, SM, CPE, XOM, as well as the electric vehicle related stocks, LTHM, BLNK,. Weakness remains in the tech stock area, computer information, i.e.OSTK. Biotech’s that are being benefited by vaccine production still are good uptrending stocks, BNTX, KURA.

The simple scanning techniques applied to candlestick signals allows investors to pinpoint which stock/sectors are going to produce the highest potential profitability. Identifying the strong patterns, such as the J-hook pattern, puts investors in trade situations where the probabilities are extremely strong the next wave is going to produce good profitability. Numerous fry pan bottom patterns are also creating good breakout moves. Recognizing when a pattern is about to breakout produces exact entry point strategies to take advantage of big price moves at the exact appropriate time. The trading logic is very simple. Stay with the strong sectors which continue to trade above the T line. Stay short in the weak sectors as long as they continue to trade below the T line. This is not rocket science.

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Good investing,

The Candlestick Forum team.

The nature of the market trend is much better analyzed with candlestick graphics. The current uptrend, albeit slow, is providing very strong pattern profit potential. Currently, the J-hook pattern is producing strong profits. These market conditions allow for taking advantage of strong candlestick patterns without the concern of bearish investor sentiment diminishing the upside potential. The oil sector is producing strong J-hook set ups. A candlestick pattern provides numerous benefits. First, the direction is highly probable, followed by a strong price move.

BLNK and VERI have formed J-hook patterns which further confirm a classic pattern. The classic pattern is a fry pan bottom breakout followed by a J-hook pattern. This combination produces extremely high probabilities of excessive more upside. Because investor sentiment works the same way time after time, utilizing the information built into candlestick signals allows for constantly putting investment funds in high profit/high probability trades.

Chat session tonight at 8 PM ET, identifying the best sectors.

Good investing,

The Candlestick Forum team

The nature of a price trend or the market trend is much more precisely analyzed using candlestick charting. Although the indexes are trading above the T line, implying were still in an uptrend, the nature of the market reveals the uptrend is very indecisive. This is illustrated on a daily basis by the indecisive individual candlestick formations. Today, after trading higher most of the day, the indexes close back at approximately where they opened, creating Doji type days. This illustrates indecision. This produces an alert for the positioning of the portfolio. There should be both long and short positions. The indecisive nature of the markets put the overall market trend in a tentative mode, meaning that any good news or bad news can swing the markets one way or the other with the lack of any decisive sentiment in the markets currently.

The J-hook pattern can be utilized for offsetting any dramatic change of the indexes to the bearish side. A price pattern is a buildup of investor sentiment. This creates a trading platform when taking advantage of the patterns that allows for extra time to get out of profitable trades if the market all of a sudden turns bearish. Currently the oil stocks and the retail stocks are producing good J-hook patterns. Keep in mind, patterns have multiple benefits. First, they provide a high degree of probability of the price direction. Secondly, the magnitude of that price move is usually much greater than merely up trending stocks in an uptrending market. And finally, if there is a major change of market direction, because patterns are created by the buildup of investor sentiment, it provides extra time to get out of a profitable trade. Simple logic, by the strong sectors. This opportunity is provided by simple scanning techniques for identifying the strongest candlestick signals and patterns.

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Good investing,

The Candlestick Forum team.

Today’s trading provided more evidence of the choppy nature of the overall market trend. The Dow closed below the T-line. However, the NASDAQ, the S&P 500, and the transportation index all trading back up and closed above the T-line. This provides the candlestick investor with the evaluation that there are currently strong sectors in this market trend as well as weak sectors. The benefit of candlestick analysis is that simple scanning techniques allow for identifying which of those sectors are acting strong and which are acting week. This provides the opportunity to be profiting from both long and short positions in the portfolio.

Currently, biotech’s have been producing very good profitability over the past few weeks. The pot stocks are starting to show good bullish chart patterns. At the same time, clothing stocks are starting to show good bearish patterns. Evaluating the signals and patterns allow an investor to see which strong sectors are starting to take profits, i.e. the electric vehicle sector, and which sectors canal be rolled into because of strength. The graphics of candlesticks are merely the identification of where investor sentiment is moving to and moving from. Using the simple graphics from candlestick analysis allows investors to have an extremely high probability of being in long or short in the appropriate sectors. Additionally, when identifying the strong sectors, each sector can be broken down into individual stocks to identify which of those stocks are producing the best bullish signals and patterns. This is what puts the probabilities consistently in a candlestick investor’s favor.

Chat session tonight at 8 PM ET, identifying the best sectors.

Good investing,

The Candlestick Forum team

The accuracy of the analysis of the overall market trend is greatly enhanced with candlestick analysis. The signals and patterns make it very easy to see whether there is an uptrend, a downtrend, or the market is moving sideways. The market indexes are currently trading above the T-line but in a very indecisive/sideways mode. However, this is not a deterrent for making good profits using candlestick analysis. At any point in time, simple candlestick scanning techniques pinpoint which sectors are acting the strongest or the weakest. Frypan bottom pattern breakouts demonstrated the electric vehicle sector and sectors that supply electric vehicles were showing very strong prospects. The pattern breakouts have now produced excessively strong profits even though the overall market trend has been sideways for the past few weeks. BLNK has moved from the $8.00 area to the current $36 area over the past six days of trading. Numerous stocks in that sector have moved with the same profitability. There is a huge added benefit for identifying pattern breakout potential situations. It not only allows for being in a price move that is in the correct direction with a high degree of probability, but it also puts investors into situations where huge price move potential is greatly enhanced. This creates a very simple trading strategy premise. Putting funds into high probability expected trade setups dramatically improves being in the correct trades at the correct time as well as dramatically improving profitability for the portfolio.

You do not have to be a skilled technical analyst to benefit from the information built into candlestick charts. It is merely the graphic depiction of human nature that have been identified as high-profit trade setups through hundreds of years of visual analysis from the Japanese rice traders. All you need to learn is what usually occurs after specific candlestick signals and patterns. The results are high probability results. This is because human nature works the same way time after time. Currently, electric vehicles, lithium mining stocks, and oil related stocks are all showing good strong buy signals. Having more weight in the sectors improves the probabilities of being in profitable trades.

Chat session tonight at 8 PM ET, identifying the best sectors.

Good investing,

The Candlestick Forum team

After the bearish left/right combo formed in the indexes over the past few days, today’s trading initially traded lower as expected. However, the next assessment is very easy for the candlestick investor. What were the indexes doing when it reached the T line? As demonstrated, the indexes traded lower than closed above the T line. This makes the probabilities extremely strong the market trend is still in an uptrend as long as the indexes close above the T line. The NASDAQ produces a much more clear trend indication, opening at the T line and trading positive on the day, forming a bullish engulfing signal right at the downtrending resistance level. A positive open tomorrow in the NASDAQ will create a very bullish confirmation. Although the market indexes are in a slow uptrend, they are still in a very choppy mode. Fortunately, convergence analysis makes the probabilities of consistently producing profitable trades very easy. Convergence analysis is merely the visual process of recognizing multiple confirmation indicators in conjunction with a candlestick reversal signal or pattern breakout. The more indicators that can be visually recognize with an instantaneous glance, the higher the probability a price move is likely to occur.

The electric vehicle sector and the lithium mining sector have produced excessively large profits over the past five trading days, BLNK and KNDI have doubled in price during that time. Participating in these price moves are greatly enhanced when the candlestick investor can visually recognize more than one confirming indicator that is likely to produce an uptrend and a very strong uptrend. The logic built into candlestick analysis provides an extremely high probability result. This allows the candlestick investor to consistently put on trades that have much greater probabilities of producing profits on a consistent basis. Join us this Saturday, November 21 for a full day training on utilizing all the information built into candlestick signals and patterns that are enhanced by multiple confirming indicators. This type of visual analysis is what can dramatically improve your profitability and consistent profitability.

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

Good investing,

The Candlestick Forum team.

What is a major advantage of candlestick investing over most investors trading? Most investors have mediocre returns because even during a strong uptrend, they will hold positions that are not working or even trading lower. Candlestick investors circumvent that mediocrity. Simple scanning techniques allow for identifying which sectors are the strongest and which sectors are not working. This produces the trading strategy for investors to quickly close out trades that are not working and moving to sectors that are showing the best strength. This produces much better returns because all the trades should be moving in the right direction. Currently, electric vehicles, lithium mining, and the oil sector are acting the strongest. Having the portfolio oriented toward the strong sectors during a market uptrend dramatically enhances the profitability of the portfolio.

Lithium mining stocks such as WWR, LTHM and PLL are producing strong returns. There will always be uptrending stock prices in an uptrending market, but the strongest profits come from identifying candlestick reversal signals and patterns that produce much better probabilities of profitable trades. The bobble breakout is a very powerful bullish price pattern set up. The shipping stocks, STNG, FRO, and TNK are all showing bobble breakout potential. Oil stocks have shown support and breakouts at the 50 day moving average making the 200 day moving average likely targets. Taking advantage of the information that is built into candlestick analysis allows an investor to take the guesswork out of which stocks/sectors will work the best. Having the majority of the portfolio positions in the sectors during an uptrend dramatically reduces the potential of mediocrity returns. The more pieces of evidence you can put into your analysis, the better the probabilities of being in a correct trade. Join us this Saturday for a a candlestick training on Convergence Analysis, identifying multiple confirming indicators that dramatically improve the probability of being in the correct trade at the correct time.

Chat session tonight at 8 PM ET, identifying the best sectors.

Good investing,

The Candlestick Forum team

The bearish left/right combo in the NASDAQ is still the relevant sell signal. The Dow has shown selling after the gap up Shooting Star type signal failed at the recent all-time high in the Dow index. The current selling is likely to bring the Dow back down to test the T-line, after moving up excessively away from the T line. This would imply having short positions in the portfolio. At this point, any long positions should have been closed out if they were showing sell signals and signs of weakness, closing below the T line. This shows the relevance of the Japanese rice traders saying “Let the market tell you what the market is doing.” The market does not like indecision. The current political atmosphere and the increase in the virus cases is producing an indecisive outlook for investors.

There still remain some good long positions as long as they stay above the T line. Simple candlestick scanning techniques also identifies good short positions, as in our recommendations to short RUN and CYH. Candlestick charts also reveal when there is not any clear analysis on a charts movement. This is demonstrated by the big traders, AMZN, NVDA, NFLX, TSLA, not showing any decisive trend movement. Simple candlestick logic implies you do not trade these stocks until there is better definable trend movements. The candlestick charts tell you when to buy, when to sell, and when to stay out of a trade. The more visual evidence that you can apply to candlestick signals and patterns, what we call convergence analysis, the higher the probability the trend will perform. Join us on November 21 for a full-day of training on how to utilize convergence analysis to dramatically improve the probabilities of being in the correct trades at the correct time.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.