Although the Dow was down 165 points today, simple candlestick analysis reveals there was not any major change of investor sentiment. Visually evaluating the NASDAQ shows that although it basically closed flat on the day, it was after it had opened lower, revealing bullish sentiment after it opened. The S&P 500 close lower but after a Doji formation, showing indecisive selling, as well as the T line continue to act as a support level. Taking all three of the indexes into account, the overall evaluation indicates there is no major change of investor sentiment. Additionally, numerous stocks traded positive on the day. The big-name stocks such as AMZN, TSLA, NFLX , BYND, traded positive, once again indicating there was no selling consensus in the overall market trend.
Candlestick patterns continue to show good profitability even in the throes of a indecisive up trending market. The fry pan bottom has produced consistent profitability in a number of our current recommendations, RAD, ITCI , REGI and ZS. ZS produced a very recognizable breakout, a Doji sandwich breaking out through the 200 day moving average, confirming the fry pan bottom breakout.SPCE produced parabolic profits, the same pattern illustrated in TSLA two weeks ago. Knowing what to expect from a pattern puts investors in the correct trades at the correct time. Knowing what investor sentiment does on a repeated basis allows the candlestick investor to take profits at the optimal points, as illustrated in SPCE today. Being mentally prepared for what human nature produces as price patterns, the candlestick investor gains huge advantages of knowing exactly when to be buying and when to be selling with a high degree of probability. This dramatically reduces emotional decision-making when it comes to investment decisions.
We will conduct a “Members Only” chat session tonight at 8:00 pm EST.
Good Investing,
The Candlestick Forum Team
