The T-line acts as a very powerful trend indicator. First, it reveals when a trend is changing, as seen in the past few weeks when the indexes exhibited candlestick sell signals and closes below the T-line. Next, it indicates when a downtrend is in progress, allowing for continuing to hold profitable short positions. Combining candlestick sell signals at technical levels such as the major moving averages greatly increases the correct analysis of what is occurring in investor sentiment.
December 6th Daily Market Comments
The T-line acts as a very powerful trend indicator. First, it reveals when a trend is changing, as seen in the past few weeks when the indexes exhibited candlestick sell signals and closes below the T-line. Next, it indicates when a downtrend is in progress, allowing for continuing to hold profitable short positions. Combining candlestick sell signals at technical levels such as the major moving averages greatly increases the correct analysis of what is occurring in investor sentiment.