A terrible market? Heck no! Not if you follow the candlestick signals. These are the type of markets that provide a huge profits. The indexes indicated last week with the sell signals followed by a close below the T-line. Was there any great expectation of the magnitude of selling? Of course not, but the profitable results of candlestick analysis is the signals and patterns have your funds placed in the correct direction of price trends. The the process is very simple! When the indexes reveal the probabilities of a downtrend, simple candlestick scanning techniques now orient investors to look for the best short positions, stocks/sectors. The T line rule provides one of the most powerful, high profit indications. Utilizing that rule allows the candlestick investor to constantly have the majority of the portfolio oriented toward the appropriate direction based upon the market indexes trading above or below the T line. Investor sentiment works the same way time after time. Knowing that information the candlestick investor gains huge advantages. It allows for accurate trend analysis based upon candlestick reversal signals and their orientation to the T-line.
Knowing the simple rules/observations the candlestick rice traders have provided dramatically improves and investors probabilities of being in a correct trade at the correct time and knowing when it is time to take profits. Alert number one, a gap down in the oversold condition has witnessed in the market indexes today creates the trading environment to start looking for buy signals. Alert number two, the further away you move from the T line, the higher the probability it will come back and test it. Note how the markets gapped down in the oversold area today and look at the distance they have moved away from the T line in the oversold area. This should provide for mental preparedness to take short position profits when witnessing potential bullish reversal signals. Or if having cash available, the candlestick investor is not in panic mode but now watching to see when buy signals start appearing in the oversold area. Basic observations provided by the Japanese rice traders provide the information that can completely alter and investors perspective. Instead of being distraught by the big selling, short positions will have been producing excessive profits allowing an investor to be getting prepared to take profits and have funds available upon seeing bullish reversal signals in the oversold condition. A terrible market? Not if you follow what the candlestick signals and the T-line reveal as far as being positioned correctly.
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Good Investing,
The Candlestick Forum Team
