Market analysis is greatly simplified when using candlestick signals and the T-line. The T-line rule provides a very powerful assessment of what is occurring in human nature. Individual candlestick signals tell you when a price move is about to reverse. A candlestick signal followed by a close above or below the T line is a high probability confirmation a new trend is starting. Witnessing candlestick sell signals and the market indexes closing below the T-line has allowed for a couple of weeks of very profitable short at the correct time.
However, the extremely powerful aspects of candlestick signals and patterns are revealed with witnessing bullish fry pan bottom signals producing good bullish profits even though the overall market trend has been heading lower. Candlestick patterns are the accumulation of investor sentiment. They illustrate what is occurring in specific stock moves in spite of general market conditions. Learning the candlestick signals and applying them to candlestick patterns greatly improves the probabilities of being in the correct trades at the correct time. These market conditions have allowed for good profits both in long positions and short positions.
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Good investing,
Stephen Bigalow
