Investor sentiment indicated that it had changed with a strong sell signal in the NASDAQ, a bearish Doji sandwich, and a close back below the T line. This occurred when the other indexes also sold off. The Dow and the S&P 500 closed back down right on the T line. This will make it very important to see what the premarket futures are indicating tomorrow. Keep in mind, the probabilities become extremely strong that a downtrend will be in progress after witnessing a candlestick sell signal and a close below the T line. A weaker open, in the premarket futures tomorrow, would confirm the selling is continuing. Having the ability to accurately assess the direction of the market allows an investor to scan for the appropriate trade setups, either long or short.
A major advantage of candlestick signals and patterns in their development based upon the accumulation of human nature. As demonstrated in a number of our recent recommendations, observable patterns continue to provide relatively strong bullish moves in spite of the major weakness of the market. The advantage of participating in what we call the Top Ranked signals and patterns is threefold. First, it creates an extremely high probability of being in the right direction. Secondly, the magnitude of the move is going to be much greater than mere up trending stocks during an uptrend. And finally, because of the strength of the price move created by bullish sentiment, the price movement of an individual stock will likely continue its uptrend or at least remain flat when the overall market has turned in the other direction, giving more time to get out of a trade profitably. Join us this weekend, Saturday, July 25, for a full day training on recognizing and implementing the Top Ranked candlestick signals and patterns. If you are going to spend the time and energy to locate good trades setups, you should maximize your efforts by learning which of the top-ranked signals and patterns will work the best for your trading. You will not be disappointed! You will gain some very valuable insights as to which price moves are going to produce the strongest potential moves and learn when the exact optimal entry point presents itself. Click here for more info.
Chat session tonight at 8 PM ET. Click here to register.
Good investing,
The Candlestick Forum team.
