The simple logic built into the Japanese rice traders’ chart analysis allows candlestick investors to maximize profits. Today, the gap down in the indexes provided an alert. The Japanese rice traders illustrate where most people sell, they panic sell at the bottom. That is the alert demonstrated by a gap down in the oversold area. The next alert was the visual analysis of the excessive distance the indexes had moved away from the T line. That combination was a strong alert to start watching for a market reversal.
The 10-minute chart becomes a valuable tool for indicating when an excess selling had come to an end. Candlestick buy signals on the 10-minute chart and a close back up above the T line revealed where bulls were starting to step in. Candlestick chart analysis is merely the graphic depiction of what is occurring in investor sentiment. You can maximize your profitability by closing out short trades at the most optimal time when taking the simple steps to analyze when investor sentiment is changing well in oversold conditions. This is what amplifies the profitability of power trades. Mark your calendars, February 5 will be a full-day candlestick training on identifying the power signal and pattern trades. You also get a lot of this repetitious learning process in our daily chat rooms. Join us for a free trial. You will gain much more insights into trading than you expect. Click here for more information
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Good investing,
The Candlestick Forum Team
