The reversal in the markets were anticipated as described in the YouTube of Sunday night, market reversal. The set up for a reversal was illustrated by the indicators created by human nature. Friday showed a gap down in the oversold area and the formation of a Doji/hammer signal. More telling was the fact that the potential Doji/hammer reversal signal occurred in an excessive distance away from the T-line. The NASDAQ produced a belt holds/meeting line signal, also well away from the T-line. Knowing the probabilities based upon the overextension of selling allows the candlestick investor to be aggressive. Witnessing a positive open in today’s trading produces the incentive to be buying long positions immediately, positions that were confirming reversal signals. One of the comments in the chat room today was that it is still hard to commit to long positions with such bearish sentiment in the markets. This is exactly why understanding the signals that set up for a major reversal is so beneficial to a candlestick investor. It cuts through the emotional thought process, circumventing the emotions that people have when the markets are selling off. This promotes the probability expectation that a reversal is occurring and not being deterred by the emotional fear factor.

Numerous belt holds signals on Friday in the oversold condition provided the visual set up for aggressively buying bullish confirmation in those stocks on the open today, understanding that a change of investor sentiment had occurred in the formation of those signals. Being mentally prepared for a high probability reversal situation allows the candlestick investor to be much more aggressive. Having the ability to identify what the signals and patterns are actually illustrating, the actual buy and sell decisions of investors, cuts through all the verbal rhetoric of the “experts”and the financial news broadcasters.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

A terrible market? Heck no! Not if you follow the candlestick signals. These are the type of markets that provide a huge profits. The indexes indicated last week with the sell signals followed by a close below the T-line. Was there any great expectation of the magnitude of selling? Of course not, but the profitable results of candlestick analysis is the signals and patterns have your funds placed in the correct direction of price trends. The the process is very simple! When the indexes reveal the probabilities of a downtrend, simple candlestick scanning techniques now orient investors to look for the best short positions, stocks/sectors. The T line rule provides one of the most powerful, high profit indications. Utilizing that rule allows the candlestick investor to constantly have the majority of the portfolio oriented toward the appropriate direction based upon the market indexes trading above or below the T line. Investor sentiment works the same way time after time. Knowing that information the candlestick investor gains huge advantages. It allows for accurate trend analysis based upon candlestick reversal signals and their orientation to the T-line.
Knowing the simple rules/observations the candlestick rice traders have provided dramatically improves and investors probabilities of being in a correct trade at the correct time and knowing when it is time to take profits. Alert number one, a gap down in the oversold condition has witnessed in the market indexes today creates the trading environment to start looking for buy signals. Alert number two, the further away you move from the T line, the higher the probability it will come back and test it. Note how the markets gapped down in the oversold area today and look at the distance they have moved away from the T line in the oversold area. This should provide for mental preparedness to take short position profits when witnessing potential bullish reversal signals. Or if having cash available, the candlestick investor is not in panic mode but now watching to see when buy signals start appearing in the oversold area. Basic observations provided by the Japanese rice traders provide the information that can completely alter and investors perspective. Instead of being distraught by the big selling, short positions will have been producing excessive profits allowing an investor to be getting prepared to take profits and have funds available upon seeing bullish reversal signals in the oversold condition. A terrible market? Not if you follow what the candlestick signals and the T-line reveal as far as being positioned correctly.

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Good Investing,

The Candlestick Forum Team

Today’s selling makes a candlestick analysis process very simple to identify. The uptrend remains in progress until you see a candlestick sell signal and a close below the T line. Thursday provided an indecisive Doji type day in the indexes. What was required to maintain the uptrend was positive trading. When the markets opened lower, that was an immediate sign that the bears were taking control. That was more confirmed with the indexes closing below the T line. This is an extremely high probability result using those simple parameters. Anytime you see a candlestick sell signal and a close below the T line, the prospects for the uptrend continuing is extremely low, the prospects for more downside is extremely strong. That visual analysis allows the candlestick investor to immediately start taking profits and closing out long positions that are showing weakness. Adding short positions becomes a much better trading strategy. This is based upon simple probabilities. Anytime a price move closes below the T line, the downward trend probabilities improved dramatically.

Bearish patterns can be easily recognized especially in sectors that are in the limelight. The China virus is implying the cruise lines are going to have much more difficulties making profits until the virus situation is resolved. Which cruise line stocks produced the best probable short positions? Simple candlestick patterns indicated which stocks in that sector has the strongest downside prospects. This is putting the stars in alignment! If you can see what the overall market trend is doing, candlestick scanning techniques can pinpoint which sectors have the highest probabilities of producing down trending moves. Using these simple techniques constantly puts your investment funds in the appropriate direction at the appropriate time.

We will conduct a “Members Only” chat session tonight at 8:00 pm EST.

Good Investing,

The Candlestick Forum Team

The markets traded lower Today on more China virus scare rhetoric. Is this the end of the uptrend? Based upon candlestick analysis, the church reveal a much different perspective as far as Today’s selling. After the Dow was down approximate 375 points it finished down 122 points is this bearish? The candlestick formation was somewhat of a Doji type day. The Dow did close below the T-line but forming an indecisive trading day. Add the analysis of the S&P 500 and the NASDAQ, there indecisive trading day continue to show a close above the T-line. This overall analysis indicates there has not been any major change of investor sentiment. The nature of the current uptrend can be characterized much better based upon the visual aspects of candlestick signals. The uptrend remains in progress as long as the indexes continue to trade above the T-line. The nature of the uptrend is revealing a very choppy movement. That is what makes the T-line a very informative indicator. The probabilities indicate the uptrend is still in progress when the indexes cannot close below the T-line. This allows the candlestick investor to have a much more precise analysis of the overall trend and does not allow themselves to be whipsawed in and out of positions.

Patterns provide relevant trend analysis confirmation. The T-line is also very applicable to analyzing what is occurring in a candlestick price pattern. Note that numerous fry pan bottom patterns have remained in an uptrend in spite of what the overall market movement is portraying. This factor can be easily explained. A fry pan bottom is a buildup of investor sentiment over a period of time. It will not be readily influenced by other factors such as the oscillation movements of the overall markets. Knowing this, I candlestick investor can be much more comfortable maintaining fry pan bottom positions no matter what direction the market is going. As long as the uptrend remains above the T-line, even on scary pullback days, the T-line shows the fry pan bottom trajectory is still in progress. The common sense analysis that can be incorporated into candlestick signals and patterns allow an investor to much more clearly understand what is going on in investor sentiment versus being emotionally whipsawed when prices oscillate but do not breach the probabilities of candlestick trend indicators. This is what dramatically reduces emotional decision-making when it comes to investing.

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

Good Investing,

The Candlestick Forum Team

Although the Dow was down 165 points today, simple candlestick analysis reveals there was not any major change of investor sentiment. Visually evaluating the NASDAQ shows that although it basically closed flat on the day, it was after it had opened lower, revealing bullish sentiment after it opened. The S&P 500 close lower but after a Doji formation, showing indecisive selling, as well as the T line continue to act as a support level. Taking all three of the indexes into account, the overall evaluation indicates there is no major change of investor sentiment. Additionally, numerous stocks traded positive on the day. The big-name stocks such as AMZN, TSLA, NFLX , BYND, traded positive, once again indicating there was no selling consensus in the overall market trend.

Candlestick patterns continue to show good profitability even in the throes of a indecisive up trending market. The fry pan bottom has produced consistent profitability in a number of our current recommendations, RAD, ITCI , REGI and ZS. ZS produced a very recognizable breakout, a Doji sandwich breaking out through the 200 day moving average, confirming the fry pan bottom breakout.SPCE produced parabolic profits, the same pattern illustrated in TSLA two weeks ago. Knowing what to expect from a pattern puts investors in the correct trades at the correct time. Knowing what investor sentiment does on a repeated basis allows the candlestick investor to take profits at the optimal points, as illustrated in SPCE today. Being mentally prepared for what human nature produces as price patterns, the candlestick investor gains huge advantages of knowing exactly when to be buying and when to be selling with a high degree of probability. This dramatically reduces emotional decision-making when it comes to investment decisions.

We will conduct a “Members Only” chat session tonight at 8:00 pm EST.

Good Investing,

The Candlestick Forum Team

The nature of a market trend is easier identified by the graphics of candlestick formations. The overall market trend for the past few months has produced a relatively solid uptrend. This is evident by witnessing a steady uptrend followed by a profit-taking pullback, then continuing the uptrend. This type of market move demonstrates the lack of exuberance with profit-taking occurring during the trend as well as on an intraday basis. Obviously this makes short term/daytrading relatively difficult. In these market conditions, holding a trending position for a slightly longer term becomes the best strategy. The ultimate criteria is the T line! As long as the overall market trend continues to close above the T line, the probabilities remain extremely strong the uptrend remains in progress.

The visual analysis of individual stock price movements allow candlestick investors to analyze each individual stock position based upon buy signals and sell signals. Profitable positions that starts showing indications of sell signals can easily be identified for taking profits, then moving funds to new stock/sectors that are starting their uptrend. The J Hook pattern has been working profitably in numerous stock positions over the past few weeks. Witnessing high probability reversals based upon candlestick signals always produce high probability/high profit trades, providing in investor with more supply of good profit potential than most investors will be able to utilize at any one time. This creates a trading strategy that allows for cultivating a portfolio, moving investment funds from profitable trades that are starting to lose steam over to new bullish or bearish positions that have greater probabilities of producing strong profits. This money management technique constantly puts investment funds into the best trade potentials.

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The Candlestick Forum Team

Analyzing the overall market trend becomes much more accurate utilizing the combination of candlestick signals and the T-line. Profit-taking became much more probable after the Dow hit another all-time high on Thursday. Profit-taking was not anticipated because the markets hit all-time highs. Profit-taking was anticipated based upon witnessing a potential candlestick signal, a hanging man/dragonfly Doji in Thursday’s trading. The potential reversal signal had additional indication profit-taking was likely to occur. After the Dow had moved up over 1000 points in four days of trading, the trading had moved the Dow well away from the T-line. This made the anticipation of Friday’s trading very simple. The Doji rule indicates prices will move in the direction of how prices open after a Doji. The bearish candle formed on Friday indicated the probabilities of the Dow eventually testing the T-line to see if it was going to continue as support. As illustrated in today’s trading, the Dow basically opened at the T-line and moved positive. The bullish sentiment of the markets were also illustrated in the positive trading above the T-line in both the NASDAQ and S&P 500. The market trend analysis remain simple, as long as the indexes continue to trade above the T-line, the uptrend remains in progress.

Profit-taking during an uptrend makes the trend much more solid. It indicates the lack of exuberance in the markets. Having the ability to project continued strength in the market due to the lack of exuberance allows candlestick investors to take advantage of the high profit pattern breakouts. Numerous fry pan bottom patterns have produced consistent profits during this uptrend. More importantly, the profits created from candlestick patterns are usually much more excessive than mere up trending price moves during an uptrend.

We will conduct a “Members Only” chat session tonight at 8:00 pm EST.

Good Investing,

The Candlestick Forum Team

The market indexes hit all-time highs Today. But be careful of profit-taking. Not because the markets of hit all-time highs but because of other indicators that show the current trend of this past week has moved too far too fast. The market indexes have moved away from the T-line. This is the alert for potential profit-taking in this area. That may not necessarily mean the market will reverse and back off, it might indicate the markets churning sideways for a few days. This would allow the T line to catch up. In these type of market conditions, expect individual stock prices to do some consolidation or profit-taking. The fact that the indexes continue to move higher in the face of bad news, politics of Washington, the China virus crisis, is the definition of a bull market. This is why the analysis of candlestick charts tells investors exactly what the investor sentiment is doing versus what everybody thinks should be happening based upon news events.

The candlestick patterns continue to work well, much better than merely up trending price moves during this uptrend. The fry pan bottom was the cause of the recommendation of RVNC Today with further expectation of a big breakout to the upside. The strong price moves during the past few days were exhibited in strong candlestick reversal signals. These included the best friend signal, which is a Doji followed by a gap up, or any signal in the oversold area followed by a gap up. Many money managers advise not to trade positions that are gapping up because you might not understand what is happening. A candlestick reversal signal followed by a gap up tells you exactly what to expect, a very strong price move. Candlestick analysis is just common sense investment perspectives put into a graphic depiction. When you understand the investment psychology that created a signal and then know what to expect to confirm that reversal signal, you understand price movements with the same clarity as somebody who has been trading in the markets for decades.

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Good Investing,

The Candlestick Forum Team

The market indexes remain in an indecisive stage. Although the markets traded higher today, the Dow and the S&P 500 are still trading below the T line. The NASDAQ formed a bullish Harami and closed just above the T line. The Dow and the S&P 500 also formed bullish Harami’s. This requires a bullish open and bullish trading tomorrow to confirm that the Harami’s indicated the selling had stopped. Until all the indexes can close above the T line, the assumption is the downtrend should still be in progress. Other factors that would imply the lack of any wholesale selling is still seeing in the strength of some of the major traders, TSLA up strong and NFLX showing good strength. This indicates there is not a mass exodus from the markets.

A major trend factor for improving individual stock price evaluation is the T line. Our stock recommendations that did not close below the T line in Friday’s hard selling showed the best bullish movements in today’s trading. This enhances the expectation of price movements remaining positive as long as you do not witness sell signals and a close below the T line. Applying the probabilities of the T line analysis in conjunction with candlestick signals and patterns greatly improves the accuracy of stock price assessments. Analyzing J hook patterns, such as TWLO, is greatly improved when seeing the price supporting on the T line and then starting to move positive again. Wedge breakouts can be better evaluated, such as SPCE, when the breakout has used the T line as a support. An investors probabilities of being in profitable trades improves dramatically when using the combination of candlestick signals and the T line.

We will conduct a “Members Only” chat session tonight at 8:00 pm EST.

Good Investing,

The Candlestick Forum Team

Is the profit-taking over? The strong sell signal in the Dow last week, the bearish left/right combo that close below the T-line provided a strong probability there was going to be further selling. The consolidation stage would remain in progress as long as the indexes continued to close below the T-line. Yesterday’s trading continued to illustrate the fact that the indexes could not close above the T-line. This provided clear probabilities there was going to be more selling. Obviously a lot of profit-taking occurred early in today’s trading but the bullish sentiment created a bullish engulfing signal in the Dow with a close right at the T-line. The NASDAQ and the S&P 500 opened lower but managed to close above the T-line. This makes tomorrow’s trading analysis relatively easy. Positive trading tomorrow would be a good indication the bulls are back in control if the market indexes can close above the T line. Unless the market sold off tremendously hard tomorrow, the worst case scenario with Today’s bullish trading would be a sideways moving market. The benefit of candlestick analysis is having the ability to much more accurately analyze the overall market trend based upon the results of candlestick signal confirmation as well as the probabilities better assessed based upon closing above or below the T-line.

Microsoft closed at an all-time high today, Amazon is up over 200 points after very spectacular earnings. These are the type of results that dictates the attitudes of investor sentiment. Candlestick charts cut through all the rhetoric. The China virus, impeachment hearings, or any other outside influences can be evaluated as to whether the bulls or the bears have any change of investor sentiment. Candlestick charts are the graphic depiction of what actual buyers and sellers are doing, not conjecture, actual decisions. The prospects of a continued uptrend still makes for very profitable pattern breakouts using candlestick charts.

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

Good Investing,

The Candlestick Forum Team