The psychology of candlestick patterns is easily interpreted with the graphics of candlestick charts. The psychology of candlestick patterns is simple logic professed by the Japanese rice traders. Where do most people buy? They buy exuberantly at the top. Where do most people sell? They panic sell at the bottom. Candlestick charts make it very easy to see graphically what is occurring in investor sentiment. Today’s gap down in the market indexes, because of the news of war starting in Ukraine, at the end of an extended downtrend was the immediate candlestick alert to start watching for a reversal. Knowing this is what occurs in investor sentiment, the candlestick charts provide visual confirmation of when it is time to start covering short positions and going long. Today produced numerous bullish engulfing signals. The Bullish engulfing signal is one of the 12 major signals. It produces extremely high probabilities of a reversal/change of investor sentiment. Join us this Saturday, February 26 for a candlestick Mini spotlight training on the bullish and bearish engulfing signals. One aspect is recognizing the signals, which is very easy. But more importantly, learning where the signals become much more relevant for producing high probability trend reversals. These trainings digs deep into the analysis of candlestick signals to make understanding what occurs in investor sentiment much clear. Click here to register.
Chat Session tonight at 7pm central. Click here to register.
Good investing,
Stephen Bigalow
