The past two trading days are a clear example of why candlestick charts are very relevant. Fundamentals do not move prices, investor sentiment moves prices. The Dow has gone from the top of its trading channel to the bottom of its trading channel in the past two trading days. On big price move days, when prices move in the extremes, the 10 minute chart becomes a valuable tool. Watch the 10 minute chart to show when investor sentiment is starting to base, as seen occurring over the past 40 minutes. Witnessing bullish signals from these levels will indicate the selling has stopped and bullish sentiment has started. It is these type of days that allow the candlestick investor to make some big profits when seeing extreme price movements reversing.
December 6th Daily Market Comments
The past two trading days are a clear example of why candlestick charts are very relevant. Fundamentals do not move prices, investor sentiment moves prices. The Dow has gone from the top of its trading channel to the bottom of its trading channel in the past two trading days. On big price move days, when prices move in the extremes, the 10 minute chart becomes a valuable tool. Watch the 10 minute chart to show when investor sentiment is starting to base, as seen occurring over the past 40 minutes. Witnessing bullish signals from these levels will indicate the selling has stopped and bullish sentiment has started. It is these type of days that allow the candlestick investor to make some big profits when seeing extreme price movements reversing.