Daytrade setups are much more clearly defined using candlestick charts. The typical reactions of human nature create daytrade setups. These can be identified no matter which direction the overall market is moving. Currently, the Dow failed to get up through the resistance level of a wedge formation. The NASDAQ and the S&P 500 formed two dark crows, a bearish reversal signal, and they closed below the T line. This combination produces high probability there will be more downsides. Day traders and swing traders can take advantage of charts that are showing strong sell signals, which will likely continue to the downside if the markets continue lower. Note in the AMZN chart that the gap down after failing at the 200 has continued to demonstrate a bearish sentiment. EA also illustrates the bearish continuation after a big gap down. Watch BAX, the gap down in price reveals a strong change of investor sentiment. Once you have learned the candlestick signals and patterns, you gain a much stronger insight into price movement. The three books published by the Candlestick Forum provide an intense learning process. They are easy to understand.
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Good Investing,
Stephen Bigalow
