Warning, warning, Will Robinson! Today’s large gap up held up most of the day but saw selling going into the final hour. This created a Shooting star type signal in the Dow after it had exceeded the all-time high in the market. This may be the classic buy on rumor, sell on news. At these levels and witnessing indecision/sell signals in the Dow, the NASDAQ, the S&P 500, and the transportation index, be ready to take profits. Any long positions that have shown weakness, candlestick sell signals, be ready to close out and start shifting to short positions. There remains a lot of unknowns in the political theater. These market conditions warrant adding short positions to the portfolio, maintaining any long positions that have not shown sell signals, and maintaining a heavier cash position. This means any trades being established should have very compelling buy signals or sell signals.

There are some very strong sell signals, OSTK and LRN had bearish best friend signals formed today. These positions can be shorted on a week market open tomorrow. Investor sentiment may be in a whipsaw mode if investors are watching the Senate race. As a candlestick investor, you may not know the outcomes of specific events that will affect the market, but the visual aspects of candlestick charts allow you to analyze what everybody else is thinking based upon possible future events. A good example is witnessing the airlines stocks opening much higher but closing at the low end of there trading ranges. This produces valuable information as far as continued strength or the lack of continued strength in the sector. On the other hand, the cruise lines open positive, closed positive but indecisively positive. Knowing what to expect after those type of graphics allows for much more accurate assessment of which way the sectors/stocks are likely to move.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

Should you be buying this market now? This is a question you do not have to ask when using candlestick analysis. The buy signals occurred on Monday of this week, after witnessing candlestick reversal signals bouncing up off major support levels. Why do most people ask whether to be buying now? That is normal human nature! They want to be convinced the buying is real. But that is usually getting to the areas where the smart investors are thinking about taking profits. When you are confident that candlestick signals reveal what is occurring in human nature, you can take advantage of buying at levels that most investors are still hesitant to be buying. This puts you in positions where you are buying with the smart money. Instead of thinking about whether you should be buying at these levels, the candlestick investor entering trades at the first signs of reversals in investor sentiment is now ready to take profits when the normal investor is thinking about buying.

There have been huge profits created from strong reversal signals that formed just this week. Simple scanning techniques revealed the electric vehicle sector was showing new strength. A major advantage of being a candlestick investor is recognizing when it is time to take profits in one sector and start rolling into sectors that are just starting an uptrend. Taking profits in specific sectors that are currently trading up strong will free up capital to go into new sectors that are showing new strength, such as gold stocks just starting a new uptrend. The visual aspects of candlestick signals allow an investor to evaluate when it is time to get in to a trade and when to get out. This allows for placing funds in stock/sectors that have a high probability of producing good profits, taking profits, and rolling into new high probability trades set ups. The strength of new stocks/sectors are clearly illustrated using candlestick signals followed by gaps. Join us tonight for analyzing how to use gaps with candlestick signals to produce big profits.

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Good investing,

The Candlestick Forum team.

Based upon candlestick analysis, although the market indexes traded positive during the day, they may not have produced any reversals. This involves having all the indicators in alignment. The stochastics are still just heading down into the oversold condition. This would imply some more selling possibilities. The NASDAQ and the S&P 500 did formed bullish Harami’s, which will now require bullish confirmation on the opens tomorrow. The Dow did not form any major reversal signal, a good indication that the bottom may not be in yet. However, today was an indication that buying was starting at these levels. Any positions in the portfolio can be maintained by using the T-line as the final factor, long positions need to stay above the T-line, short positions need to stay below the T-line.

There are some J-hook patterns working well in this possible bottoming action. Auto manufacturers are showing strength as seen in NIO and LI. Any establishing of new long positions should have very compelling by signals or patterns. Short positions can be maintained as long as there is not evidence of bullish signals and a close above the T line. Overall, these market conditions warrant being less aggressive for establishing new positions until the markets show a definite direction. This would make staying in cash a good strategy, having dry powder ready for the next market/sector moves.

Chat session tonight at 8 PM ET with Guest Speaker Kirt Christensen. Click here to register.

Good investing,

The Candlestick Forum team.

Simple candlestick trading rules allow investors to dramatically improve the probabilities of being in the right direction at the right time. The T line rule, assumes that investor sentiment has gotten negative/bearish if a trend/price is trading below the T line, especially after a candlestick sell signal. This is been demonstrated when the indexes close below the T line last week. If you understand that a close below the T line is an indication that investor sentiment has turned bearish, it makes the probabilities that any negative news is likely to add to the downside with much more energy. There will be a small number of positions acting bullish in a down trending market, but why go against the probabilities. As soon as the major indexes show a sell signal and a close below the T line, the immediate trading strategy should be closing long positions that are not showing strength and adding short positions to the portfolio.

Numerous positions could be identified today in the selling of the market after sell signals. A bearish kicker signal in NLCH revealed the strong selling pressure in the cruise line stocks. A number of stocks such as KRA had shown indecisive trading, a series of Doji’s, in the overbought area and traded much lower today below the T line. These are chart set ups showing a dramatic change of investor sentiment allowing the candlestick investor to go after short positions that have high degree of probabilities of heading down further. This market is likely to trade indecisively going into the election. Investors do not like uncertainty! Candlestick investors can identify what investor sentiment is doing based upon the confidence or the lack of confidence of anticipated outcomes. Until an outcome can be verified, the slow drifting downtrend of the markets will remain in progress.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

Let the market tell you what the market is doing! This is the advice from the Japanese rice traders. When the indexes showed strong sell signals on Monday and closed below the T line, the probabilities of the market trend change dramatically. A close below the T line produces strong probabilities the downtrend is now in progress. The downtrend will remain in progress until witnessing a candlestick buy signal and a close back up above the T-line. Today’s trading illustrated continued indecisiveness. The Dow bounced off the 50-day moving average but then closed at the T line. The NASDAQ continues to trade below the T-line. This puts the market trend still in an indecisive nature. These are market conditions that warrant having both long and short positions in the portfolio. Long positions can be maintained as long as there is not a candlestick sell signal and a close below the T line. Short positions can be maintained as long as there are not bullish candlestick signals and a close above the T-line.

Candlestick investors have a major advantage. Very simple scanning techniques will allow for immediately pinpointing which chart patterns are producing the strongest bullish strength and the strongest bearish strength. Even when there is not a definitive direction of the overall market, the simple scanning techniques will always find good strong buy positions and good short positions. Currently, there are numerous J-hook patterns in progress, the insurance stocks are showing strong J-hook patterns. AXL is illustrating a bobble breakout, which is a very high probability trades set up.TUP has formed a MorningStar signal right on the 50-day moving average, clearly indicating this is where the buyers were stepping back in. The analysis of candlestick charts allows for extremely high probability trades.

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

Good investing,

The Candlestick Forum team.

Why should you have safety stops in place? Simple, when the market indexes are not showing any decisive trend, strength in one direction or the other, a simple Washington tweet or statement can dramatically move investor sentiment. The stimulus package still producing indecision. As you have seen in the morning and afternoon comments over the past couple of weeks, the analysis was that the uptrend was in progress as long as the market indexes continue to close above the T line. However, it was pointing out that the nature of the market trend showed a lot of indecisive trading, even though it was in a slow uptrend. Knowing what the nature of investor sentiment is during a trend is important. It illustrates the lack of any decisive bullish or bearish force. This leads to the possibility of dramatic changes of investor sentiment upon bullish or bearish influences. These market conditions make having safety stops in place more important. Getting stopped out of positions allows for reanalysis of the overall market trend as well as evaluating whether reentering a position, that was stopped out, is the best place to be reestablishing trades.

Candlestick patterns provide a safety factor. Patterns are set up due to a buildup of investor sentiment. This diminishes the importance of the overall market trend pertaining to that pattern price move. Investor sentiment is more in control. The J-hook patterns continue to show better probabilities of price moves continuing in the expected directions.LAKE, DOYU, EXAS, AVYA and ENPH
are all reviewing good J-hook patterns. But the bearish close below the T line in the market indexes also provide better opportunities in short positions, OSTK, FB, APD , and NVAX can be shorted on further weakness tomorrow. The weeds stocks, TLRY and CGC, can be bought on positive trading. That sector is showing good strength. These market conditions warrant having both long and short positions in the portfolio.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

Market consolidation or trend reversal? That question is much more easily assess using candlestick analysis charts. Today’s gap down open was further consolidation that had been expected from the analysis of the market indexes over the past few days. Monday demonstrated a gap up in the overbought condition, especially in the NASDAQ. This produces a high probability of exuberance. The Japanese rice traders advise getting ready for profit-taking when you see a gap up in the overbought area. What was the expected pullback? The T line becomes a logical area to watch to see whether prices would support at that level. Today’s trading, gapping down below the T line in the indexes, was either a major reversal or the end of the current consolidation. Candlestick charts provide a much more clear indication of whether it was merely the end of the consolidation. Note how the NASDAQ immediately started trading higher after the open. Additionally, flipping to the 10-minute chart would reveal bullish patterns be in created. Join us this weekend for a full two-day comprehensive training on how to apply the T-line to the analysis of candlestick signals and patterns to dramatically improve your profitability. This is information that will greatly improve your trend analysis for the rest of your life. Click here to join.

Knowing, with a high degree of probability, the direction of the overall market trend allows the candlestick investor to take advantage of high-profit candlestick patterns. There are numerous J-hook patterns setting up. Not only does this allow investors to be in the right direction at the right time, it also allows for the projection of the next price move, wave one and wave three being equivalent. FRTA, CVET, ALSN, ENPH, and DY are all strong examples of high probability J-hook pattern trades setups. Note how the T line greatly enhances the probabilities of recognizing the pattern set up. Take advantage of the information that has worked effectively for centuries. The most consistent price indicator is human nature.

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

Good investing,

The Candlestick Forum team.

What is making the market continue its uptrend? Politics? Earnings? We do not need to know, we do not need to be in-depth economic analysts. The candlestick charts provide the information required to make good profits. Candlestick signals and patterns are the accumulative knowledge of everybody buying and selling, based upon their expectations, there analytical viewpoints. The current market trend is still providing very profitable trades from candlestick pattern breakouts. The first factor for being in profitable trades is having the ability to analyze what the overall market trend is doing. Obviously, if the market trend is bullish, the profitability from bullish candlestick pattern breakouts are going to be more pronounced.

There are numerous profit trades continuing in our portfolio. Once a pattern breakout has been confirmed, steady uptrending positions can be maintained using the simple T-line rule. Our recommendations on NXTC, FDX, VCEL, BNTX, AVYA , DY, and DQ all have one consistent characteristic. Once they broke out of the candlestick pattern, they have continue to trade above the T-line continuing their profitability’s. The T-line rule basically demonstrates that as long as a trend remains above the T-line, the probabilities remain extremely high the trend will continue. This has two major benefits. First, obviously creating profitable trades. Secondly, the analysis time required to analyze what to do with that trending position in the portfolio each evening takes merely a matter of seconds. This frees up more time to analyze the positions that may have some changing of investor sentiment, requiring more analysis. The combination of candlestick signals and patterns in conjunction with the T-line produces an extremely high probability platform for being in profitable trades a high percentage of the time. Join us this weekend for a full two day comprehensive training utilizing the T-line, the triple T training. Click here for more info.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

The ability to make consistent profits in the markets is dramatically enhanced when utilizing candlestick signals and patterns in conjunction with the T-line indicator. The analysis of the market trend is greatly improved when knowing the market indexes continue to trade above or below the T-line. As illustrated over the past two weeks of trading, the indexes have waffled/isolated dramatically on a day-to-day basis. But the underlying factor remains that the uptrend is in progress because the indexes could never close below the T-line. This is not rocket science! This is merely utilizing the information provided in 400 years of analysis from the Japanese rice traders. Investor sentiment produces high probability reoccurring signals and patterns. Once you have learned what the expected results are from candlestick signals and patterns, you control your own investment results.

The J-hook pattern has been a high-profit pattern in the current market conditions. Our trade recommendation for GOOS has produced good profits even in the midst of a highly oscillating slow market trend. Recognizing the J-hook pattern set up early today provided our chat room members with a 28% profit move. The benefit of candlestick patterns is merely the visual recognition of what usually occurs in human nature. Join us on October 17 and 18th for a comprehensive training utilizing candlestick signals and patterns in conjunction with the T-line. Candlestick analysis is the utilization of the reoccurring results of human nature. The T-line acts like a natural support and resistance level of human nature. The combination produces an extremely high probability trade strategy result. Chat session tonight at 8 PM ET with Guest Speaker Steven Primo. Click here to register.

Good investing,

The Candlestick Forum team.

How do you keep yourself from getting whipsawed out of good positions? Using the ultimate trend indicator with candlestick analysis – the T-line. The T-line acts as a natural support and resistance level of human nature. When you combine this with the graphic depiction of investor sentiment, you produce an extremely high profit/high probability trade combination. Prices do not move based upon fundamentals! Prices move based upon the perception of fundamentals. This is exactly what the graphics of candlestick analysis provide, the interpretation of the fundamentals. Friday, both the Dow and the NASDAQ closed back at the T-line area. This provided a very easy trend analysis. The indexes needed to trade positive today to produce high probability of the uptrends continuing. Seeing the positive open allows the candlestick investor to move immediately on good bullish trades, knowing the uptrend had a high probability of remaining in progress.

A good number of our recent recommendations were up 8%, 11%, 13%, and 16% today. This is based upon the expected results coming out of J-hook patterns and frypan bottom patterns. Utilizing the information incorporated in a candlestick pattern produces much greater probabilities of moving in the right direction but also pattern breakouts produce much more excessive profitability than merely up trending stocks during a choppy uptrend. BNTX is a good illustration of a frypan bottom breakout, especially breaking out through the 50 day moving average.HIBB J-hook pattern results work as expected. The identification of strong patterns are enhanced as they work off of the T-line. Join us on October 17 and 18th for a full two-day training discovering how the T-line dramatically improves your correct trade ratio. You can make very good profits using candlestick signals and patterns. You can make great profits using candlestick signals and patterns with the T-line. Click here for more information.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.