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.
