Both the Dow and the NASDAQ showed good strength above observable technical levels. The Dow continues to trade up above the resistance level that has developed in the markets over the past two months. The NASDAQ is producing a J-hook type pattern trading well back up above the T-line. This is producing a major benefit for candlestick investors. Once identifying the candlestick pattern breakout set ups, the price move results have extremely good profit potential because there is currently the lack of any bearish fear in the market trend. This provides additional strength when a bullish candlestick pattern breaks out. As illustrated in our recommendation this week on NCTY, the fry pan bottom breakout produced an inordinately strong profit. Not only to candlestick charts reveal when a high profit trade set up is about to occur, the same investment psychology allows candlestick charts to indicate when it is time to take profits.
Numerous charts, especially in specific sectors, such as the electric vehicle, lithium battery, and biotech sectors are producing very strong candlestick patterns. Not all stocks/sectors are participating in this uptrend. Candlestick scanning techniques allows an investor to pinpoint which sectors are producing the best results based upon identifying the signals illustrating strong bullish sentiment. This allows for concentrating investment funds into areas that are performing the best. There is also evidence of sector rotation. A major advantage of utilizing candlestick analysis is identifying when it is time to take profits. Join us January 16 for a full day training on the indicators built into candlestick charts that allow for taking profits at the high probability areas. It is just as important for knowing when to be buying as it is for knowing when to take profits.
Because of a change of politics in Washington DC, simple candlestick scans have revealed where the next big price moves are likely to occur. Lithium batteries are making dramatic changes in the electric vehicle area. Candlestick charts allow for the identification of which stocks in those sectors will produce the highest probabilities of strong profits. This is not rocket science! This is merely common sense analysis based upon the bullish signals and patterns that Japanese rice traders have identified over the last 400 years.
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Good investing,
The Candlestick Forum team
