Although the volume at holiday time is usually much lower than normal, the underlying factor of the existing volume is that it will still show what investor sentiment is revealing from investors that are participating in the slow volume markets. Currently, it is evident that there is not any change of investor sentiment, slow bullish buying continues the uptrend. Obviously the week of the holiday will not have the full gamut of investors. The candlestick investor can dramatically improve profitability by accurately evaluating what the overall market trend is going to do. We saw the breakout into new territory after consolidation for the last two years. This would imply wave three was in progress. The continuation of wave three can be refined by using the T line. The whole aspect of candlestick analysis is merely common sense applications of what investor sentiment has done over and over in the past. The signals, the patterns, the T line, and the other major moving averages provide a trading platform that results in extremely high probability/high profit trades.
This is usually a good week to not do anything aggressive, maintain positions that have not shown reversals and most importantly assess your results of this past year. What did you do correctly, what seem to be the most comfortable type of trading for you, what did you do that consistently produced negative results for your trading? Analyze which candlestick signals and patterns that were the most profitable results for you this past year. Trading is like any other activity. You have to constantly evaluate what you are doing right and what you have been doing wrong. Candlestick signals and patterns produce high probability results. That is why they are still in effect today. Human nature works the same way time after time. Successful investing is utilizing information that will be applied to trades that have high probability results. When you learn to identify the patterns and understand why those patterns are created, you gain control of your own investment future.
got it
There will be no Chat session tonight.
Good Investing,
The Candlestick Forum Team
