Big Candlestick Short Trade Setups

Another Doji type day in the markets. Although the NASDAQ is trading slightly positive, it is doing an indecisive trading day. The Dow is trading slightly lower but also indicating another Doji day. This indecision warrants keeping safety stops close. It also implies adding some short positions to the portfolio. Be prepared to start shifting from long to short positions. AAPL, AMZN in slow downtrends. NVDA is the only biggie trading positive. This implies an indecisive nature occurring in overall investor sentiment. Having the ability to identify indecisive trading occurring in the overall market allows candlestick investors to get prepared for shifting the orientation of the portfolio. It allows for taking profits in long positions that are starting to show weakness as well as adding short positions into the portfolio. This creates a simple common sense trading strategy, moving the portfolio toward the overall direction of the market.

SAVA provides a strong opportunity for shorting in a market that is now not illustrating any great bullish sentiment. Add the fact that it had a parabolic uptrend that is now getting sold off dramatically provides the opportunities for high probability/high-profit short positioning.

DKNG is another short position prospect based upon a strong candlestick reversal signal in the overbought condition, followed by today’s close below the T-line. LL also illustrates a high probability short trade. Note the failure at the 50 day moving average. This demonstrates a strong bearish pattern called the blue ice failure. Today’s Doji provides an excellent short entry positioning. A lower open would reveal a bearish Doji sandwich, making the 200-day moving average the next likely target. Price movement analysis is greatly enhanced by knowing what investor sentiment will produce as far as high probability trades signals. Join us in the Candlestick Forum chat room where numerous eyes identify the high probability trades setups.