July 15th Market Wrap-Up

The left/right combo, one of your strongest candlestick reversal signals formed in the NASDAQ, followed by a close below the T line is a strong indication there has been a change of investor sentiment. The T-line rule is very simple! The uptrend remains in progress until you see a candlestick sell signal and a close below the T line. Uptrending stocks such as NVDA, SAVA and FSLR are all good examples of when to take profits, witnessing sell signals and closing below the T-line. Utilizing the simple trading rules based upon human nature allows investors to maximize your profitability by knowing when candlestick signals indicate trends are starting and when trends are ending.

Simple scanning techniques identify the best bullish trades and the best of bearish trades. Another sign of when investor sentiment is starting to turn bearish is merely the simple numbers of better bearish trades being identified versus bullish trades. Over the past few weeks, even though the uptrend has been in progress in the market indexes, the nature of the market has been showing profit-taking/selling as it has reached the overbought condition. Simple logic built into candlestick analysis allows investors to anticipate with more accuracy when price movements are about to occur, either bullish or bearish.

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Good investing,

The Candlestick Forum team