January 23rd Market Direction

Reading candlestick charts correctly significantly improves an investor’s profitability. Reading candlestick charts merely identifies the patterns and signals that have worked consistently. As illustrated in today’s trading, the NASDAQ confirmed a J-hook plus pattern, the S&P 500 confirmed a bobble breakout pattern, and the Dow continued to trade positive in the middle of a wedge formation. Reading candlestick charts produces a straightforward trading strategy. If the market indexes are forming candlestick patterns, numerous individual candlestick stock charts will likely be producing the same patterns. The candlestick forum teaches investors to recognize what is occurring in investor sentiment that will produce a high probability expected result. Prices do not move based on fundamentals! Prices move based on the perception of fundamentals. Candlestick signals and patterns represent what investor sentiment thinks about the current fundamental status of each stock. Once you learn the 12 major signals and the candlestick patterns, you have a much better grasp of what price movement will likely do. This alleviates listening to all the experts/talking heads on investment news stations. There is only one correct analysis! That is the market itself.


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Good Investing,

Stephen Bigalow