How do you make hay while the sun shines? Candlestick analysis provides a common-sense strategy. First, the analysis of the overall market trend provides the initial analysis. The T-line is an integral part of confirming the continuation of an uptrend after witnessing strong candlestick reversal signals. From that point, it becomes simple scanning processes for finding the strongest sectors, which then leads to identifying the strongest chart patterns of individual stocks from those sectors. A few weeks ago, the biotech stocks showed good strong bullish signals. They are currently producing continued strong price moves, good profits. Other sectors have come into play. Oil stocks are showing uptrends. The retail stocks are starting to show strong bullish patterns. As a candlestick investor, simple scanning techniques make identifying which stocks will likely move the strongest during an uptrend an easy procedure.

Most investors are happy to have a majority of their stocks heading up during an uptrend. However, they may not be in the best bullish stocks in the uptrend and most investors continue to hold losing positions in hopes those positions will eventually turn around and start back up. Candlestick analysis eliminates that hoping process. The common-sense logic built into candlestick analysis produces a discipline. The charts recognize which stock/sectors are not working well so that they can be closed out and moved too much stronger trade potentials. This greatly reduces a mediocre return of a portfolio during an uptrend. It allows an investor to maximize the bullish potentials by having funds in positions that have much greater probabilities of not only moving positive but moving positive with much greater strength. Take advantage of this weekend’s two-day comprehensive candlestick training. It starts with the most basic candlestick training, the 12 major signals. It is then followed by high probability candlestick patterns. Everything built into candlestick analysis is basically common sense put into a graphic depiction. You will learn how to place common-sense stop-loss levels, improved probabilities with simple entry strategies, learn when to take profits, identify the most powerful candlestick signal/pattern combinations and finally learn how to scan for those best trade positions. This comprehensive training will dramatically change how you look at trading.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

What are the strongest candlestick patterns? This is a question often asked. But there is no correct answer. In these market conditions, the J-Hook pattern’s and the bobble breakouts are working very effectively. Next week or next month it may be fry pan bottom breakouts or best friend signals. All the candlestick signals and patterns illustrate a strong change of investor sentiment. The reason to recognize each one and understand what that signal or pattern is illustrating is important because specific market conditions could make any of those signals and patterns work effectively. There are numerous J hook patterns producing very strong profits in these market conditions.

The J-Hook pattern and the bobble breakout identification are greatly enhanced utilizing the T-line. This can be illustrated in some of our recent recommendations such as LVGO, SP, CDAY. Because investor sentiment works the same way time after time, the J-Hook pattern provides two strong benefits. First, it is easy to recognize as it is setting up. Secondly, the magnitude of the next wave, wave three, can be calculated based upon the magnitude of wave one. They are usually about the same. Recognizing when a J-hook pattern is setting up provides optimal entry strategies. Also, for the option trader, it allows for very profitable options spreads based upon knowing what the upside target is likely to be. Having the ability to recognize the development of a pattern and its price movement dramatically improves the correct trade ratio as well as the profitability of being in price moves that will move much stronger than mere up-trending stock prices. Join us on May 16 and 17th for the two-day comprehensive training on candlestick analysis. You will learn not only to recognize the signals and patterns but you will also understand the psychology that created those signals and patterns. This gives you the same insights into price movements as an investor with 50 years of trading background.

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

Good investing,

The Candlestick Forum team.

When the market indexes closed below the T-line on Friday, there was a very good probability there will be some more selling consolidation going into the early part of this week. The Dow sold off early but note that it used the 50 day moving average as a support, at the low of the day. The NASDAQ opened lower but immediately started trading higher and closed up almost 100 points for the day. This created a bullish engulfing signal at the T line area. The positive trading in the indexes today made the prognosis of a trend channel remaining in progress. With the NASDAQ closing above the T-line, any positive trading tomorrow would improve the probabilities of the slow uptrend channel continuing. This has made for some very strong J-hook pattern setups.

Add the fact that the big traders, AAPL, NFLX, NVDA, AMZN all traded positive today was another good indication that the bearish sentiment had not taken control. Numerous J-hook patterns developed today in individual stocks, creating high probability bullish trade setups. Numerous J-hook patterns showed that the T-line was continuing to act as support, making the probabilities of the next wave to the upside that much greater. The reason for utilizing candlestick patterns is twofold. First, it produces a high probability direction for the next move, and secondly the magnitude of that move is usually very strong. These are the elements that make utilizing candlestick analysis a much higher probability of not only being in a correct trade, but a strong price move correct trade.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

The graphics of the candlestick charts provide much more clarity for analyzing an overall trend but even more defining, the nature of a trend. The graphics illustrate that the current uptrend is still a very indecisive oscillating movement. One day trading up, the next day trading lower, but the overall trend can be identified as an uptrend as long as it continues to trade above the T line. Today the Dow traded lower while the NASDAQ trading just slightly lower but with an indecisive Doji type formation. This clearly reveals there has not been a major change of investor sentiment. These market conditions rely much more heavily on utilizing the T-line as the ultimate trend indicator. The major benefit of candlestick analysis is being able to identify candlestick patterns that are going to produce high probability/high-profit results. This analysis also allows an option trader’s to put on the best option strategy for specific candlestick patterns. Join us this Saturday, May 2, for a full day training on how to utilize the correct option strategy with specific candlestick patterns.www.stephenbigalow.com/options-strategies.

The Fry Pan bottom patterns are working very well in these market conditions. The Fry Pan Bottom pattern is very easy to identify. It allows an investor to enter a trade right at the optimal entry point. The Fry Pan bottom has very strong price move expectations. This creates two huge benefits for a candlestick investor. The direction of the next price move can be identified with a high degree of probability and the result of that price move is a very strong profit trade.

Chat session tonight at 6 PM ET with Stephen Bigalow. Click here to register.

Good investing,

The Candlestick Forum team.

The overall market trend is relatively easy to evaluate using a simple combination, candlestick signals, and patterns in conjunction with the T-line. This allows for a very accurate assessment of the overall market trend. Additionally, this allows the candlestick investor to take advantage of price patterns that will produce the strongest returns during an uptrend. The J-Hook pattern has an easy price move calculation. Wave one will usually be the same magnitude as wave three. This creates the opportunity to be in strong price moves during a market uptrend instead of merely up trending prices during an uptrend. This also allows for easy to apply option strategies knowing what the magnitude of the next move of a stock price will be. Join us this Saturday, May 2 to learn how to apply the appropriate option strategy with the candlestick pattern. You will gain some valuable insights on how to maximize profitability with option strategies while at the same time dramatically reducing risk. Click here for more info.

The J-Hook pattern is producing some very strong profit potentials. Note how our recommendation on BLUE is a combination of a classic pattern with a bobble breakout/J Hook pattern right at the 50-day moving average. This produces the prospects of a very strong wave three that could take this price move from the $61 area up to the $85 area with a high degree of probability. The same pattern set-up can be seen in TSLA, producing a good option trade set up. Take advantage of the strength resulting from a J-hook pattern breakout as seen in our recommendations on NNA and INSG. These patterns have much better prospects of producing big price moves as long as there is not any major change of investor sentiment in the overall market trend. There are still numerous ‘experts’ predicting the market is going to selloff and test the recent lows. This is a very bullish sign. Let the market tell you what the market is doing!

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

When the markets traded positive Today, it produced the possibility of a bullish flutter kicker signal, one of the strongest bullish candlestick signals. However, although the market indexes did trade positive, they formed Doji days, illustrating indecision. The indexes are currently trading above the T line but the Doji day continues to produce the possibilities of the markets trading lower again. Remember the Doji rule! Prices/trends will usually move in the direction of how they open after a Doji. This makes trend analysis relatively simple. The markets will probably move in the direction of how the the indexes open tomorrow. A lower open, causing a selloff, would bring the indexes back down below the T line. The NASDAQ is still trading relatively strong, not only above the T line but also above the 50 day and 200 day moving averages. Fortunately for candlestick investors, a sideways moving market still allows for the identification of strong bullish charts or strong bearish charts. Currently the medical supply and medical healthcare stocks are acting well. The oil stocks are showing good bottoming action.

Being able to identify what type of signal/pattern is developing an individual stock price allows investors to put on appropriate option strategies. Most investors think buying calls in an uptrending stock is the best way to make a profit. That is not always true. Simple option spread strategies have much better profitability, as well as probability, when knowing what the next price move should be. Join us on May 2 for a full day training on the appropriate option strategies. They are not difficult. You gain a whole new perspective on how to put high profit option trades in place using easy to apply spreads and calls.

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

Good investing,

The Candlestick Forum team.

The market indexes continue to trade above the T-line. This provides high probabilities the uptrend remains in progress. However, the nature of the market is difficult to trade. It is still maintaining the characteristics it has exhibited for the past two months, oscillating during the trend. Up one day and down the next day. The markets are still very sensitive to outside influences. Today crude oil prices continued to go to low’s not seeing for decades. Fortunately, as mentioned in our stocks to watch YouTube videos of Sunday night, simple scanning techniques pinpoint which sectors are going to act the strongest. Biotech stocks and retail stocks were mentioned. Retail stocks did not move but numerous chart pattern confirmation provided strong profits in the biotech stocks. Identifying candlestick signals at pattern breakout levels dramatically enhances being in the right direction at the right time. This basic candlestick analysis is what is called 2+2. This is identifying a signal that illustrates a candlestick pattern breakout confirmation.

Numerous biotech stocks showed fry pan bottom breakouts. In spite of the markets trading lower today, candlestick scanning techniques provide a supply of profitable trades setups. Pattern setups moving toward observable resistance levels provides the candlestick investor with very easy trade entry strategies. This creates a trading program that consistently puts investment funds into high probability/high-profit trades. Join us this week revealing how the kicker signal, the strongest individual candlestick reversal signal, can be utilized for identifying strong profit trades.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

Candlestick pattern breakouts are working very effectively in this market environment. Candlestick pattern breakouts have a much better probability of working profitably when the analysis of the market trend, in general, remains bullish. This is based upon a very simple factor. As long as the market indexes continue to trade above the T-line, it has to be assumed the uptrend remains in progress with a high degree of probability. Note on the charts, the Dow used the T-line as a support level Today. This is significant because nobody has the T-line on their charts, which provides additional evidence the T-line acts as a natural support and resistance level of human nature. Knowing the uptrend is in progress but may be still in a waffling/whipsaw type nature, moving too quick trades, such as day-trading becomes prudent. Candlestick pattern breakouts makes for very high profit/high probability trades. Candlestick analysis works on any time frame. If you are a day trader, the signals/patterns work extremely well on a one-minute, five-minute, ten-minute chart combination. Join us this Saturday for a day-trading training. This will just be implementing common sense pattern breakouts for short-term trades. Click here to register.

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

Good investing,

The Candlestick Forum team.

Candlestick analysis allows for a much more accurate assessment of the nature of a trend. Although the Dow was down, it was not a major decisive candlestick formation. The S&P 500 traded lower but not decisively lower. The NASDAQ traded positive on the day. The lack of consensus is a good indication that there is no major change of the current trend, investor sentiment has not changed. This provides candlestick investors the opportunity to identify which sectors are acting the strongest. As pointed out in the ” stocks to watch ” YouTube this weekend, the gold and silver mining stocks had good bullish prospects if they traded positive today, which they did. Simple confirming techniques illustrate which bullish signals and patterns that are confirming. Whether you are day-trading or swing trading, the open price, after a signal or pattern set-up provides a high probability of a trade direction. Day-trading profits are greatly enhanced knowing which direction a trading entity is likely to move during a specific time frame. This is what is going to be demonstrated in this weekends Day-trading training session. Join us, you will gain a lot of insights that will greatly improve day trading and swing trading entry strategies. Click here to register.

Additional indication, that there is a lack of selling pressure in this trend, is illustrated in the big-name stocks. AMZN was up $125 today. NFLX was up $25 today.TSLA, AAPL and NVDA all traded positive. Although the Dow was trading lower, the positive trading in these major traders reveal bullish sentiment is still in the overall market conditions. Finally, knowing how to utilize the T-line will take a great amount of anxiety out of your trading emotions. There will be numerous trading days where up trending stocks are trading lower. This usually creates fear and consternation in many investors. However, the T-line provides an extremely high probability trend indicator. As long as there is not a candlestick reversal signal AND a close below the T-line, your probabilities are greatly inclined toward continuing an uptrend. If you have problems controlling your emotions when you’re money is on the line, these simple candlestick techniques will greatly improve your self-discipline. Currently, the T-line support indicator reveals the uptrend is still in progress. You have the benefit of high probability expected results based upon candlestick signals and the T-line trend combination.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

Profit-taking going into a three day weekend is not unexpected. However, the market indexes have not show anything that has currently changed the uptrend. Wave three of the J hook patterns make the 50 day moving average the likely target, but be aware of events over the weekend that might create either bullish or bearish implications for Monday morning.What allows you to be in the correct trades at the correct time? Recognizing candlestick reversal signals and patterns. If you listen to the news or analysts, you’re going to be wrong most of the time. If you look at candlestick charts and understand what the signals illustrate, you will be correct most of the time. This is what takes the emotions out of your investing. Currently the J Hook pattern remains in progress in the indexes. Assume the uptrend remains in progress as long as the indexes continue to trade above the T line. But also keep in mind, the market trends are still capable of whipsawing based upon news or events. Today’s trading illustrated a lack of movement from where the markets opened. Again, not unusual to see a Doji day before a three day weekend.

Specific sectors continue to act strong. The housing stocks as well as the mortgage stocks continue strong uptrends. Although the Russians and Saudi Arabians agreed on cutting production, crude oil prices eventually traded lower on the day. This is one of the major benefits of candlestick charts. They reflect what investor sentiment thinks about events or decisions. What would seem to be bullish for crude oil prices did not occur. That becomes a clear illustration that the level of cutback may not have been what the market was expecting. Candlestick analysis takes the responsibility of trying to analyze what might happen in the future based upon specific events and moves it over to analyzing what everybody else has decided about those events.

Chat session tonight at 8 PM ET with Guest Speaker Barry Burns. Click here to register.

Good investing,

The Candlestick Forum team.