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.
Chat session tonight at 8 PM ET. Click here to register.
Good investing,
The Candlestick Forum team.
