The nature of a market trend is easier identified by the graphics of candlestick formations. The overall market trend for the past few months has produced a relatively solid uptrend. This is evident by witnessing a steady uptrend followed by a profit-taking pullback, then continuing the uptrend. This type of market move demonstrates the lack of exuberance with profit-taking occurring during the trend as well as on an intraday basis. Obviously this makes short term/daytrading relatively difficult. In these market conditions, holding a trending position for a slightly longer term becomes the best strategy. The ultimate criteria is the T line! As long as the overall market trend continues to close above the T line, the probabilities remain extremely strong the uptrend remains in progress.
The visual analysis of individual stock price movements allow candlestick investors to analyze each individual stock position based upon buy signals and sell signals. Profitable positions that starts showing indications of sell signals can easily be identified for taking profits, then moving funds to new stock/sectors that are starting their uptrend. The J Hook pattern has been working profitably in numerous stock positions over the past few weeks. Witnessing high probability reversals based upon candlestick signals always produce high probability/high profit trades, providing in investor with more supply of good profit potential than most investors will be able to utilize at any one time. This creates a trading strategy that allows for cultivating a portfolio, moving investment funds from profitable trades that are starting to lose steam over to new bullish or bearish positions that have greater probabilities of producing strong profits. This money management technique constantly puts investment funds into the best trade potentials.
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Good Investing,
The Candlestick Forum Team
