Although holiday weeks usually see trading with much lower volume, the candlestick charts are still relevant for demonstrating investor sentiment of the trading that is being executed. Today’s positive trading continues to illustrate bullish sentiment is in control. This becomes much more clearly illustrated based upon the uptrend remaining above the T line. Currently there is no signs of exuberance in in the market trend. The overall trend analysis illustrates a wave three coming out of the sideways consolidation stage of the markets over the past few months. Wave three should have an up trending bias going into the end of the year based upon the magnitude of wave one prior to the consolidation. Investor sentiment will usually continue in existing trend until there is a definite candlestick reversal signal or exuberance starts coming into the market. The exuberance illustrates everybody is confident that the markets are going higher. That becomes the time to watch for the smart money starting to take profits.
The current study uptrend of the market continues to produce high profit candlestick breakout trades. When the market is in a steady uptrend, the bigger profit trades will result from candlestick pattern breakouts. The fry pan bottom pattern and the J hook patterns continue
to produce high probability trades. Fry pan bottom patterns at breakout levels such as a major moving average as illustrated in the TWTR chart produces a high probability result as well as a high profit result. The buildup of investor sentiment, the pattern, allows the candlestick investor to be prepared to buy at the ultimate entry point with a high degree of expected results. The utilization of candlestick signals, which is the graphic depiction of human nature, has been demonstrated over hundreds of years as being the most reliable indication of price movements.
We will conduct a “Members Only” chat session tonight at 8:00 pm EST.
Good Investing,
The Candlestick Forum Team
