A basic statistical observation of the Japanese rice traders anticipated the market reversal. A market reversal/price reversal is highly likely to occur after eight consecutive bullish trading days. Why does this work? Human nature! The selling became obvious late in the day when the Dow started trading back through the halfway point of yesterday’s candle and more compelling when it started trading below the previous day’s open. Seeing this occur allows the candlestick investor to start taking profits at the appropriate times. The NASDAQ opened positive but immediately started trading lower to the point where it closed below the T line, forming a bearish left/right combo, one year most vital candlestick reversal signals. This provides the opportunity to start shorting positions. Everything built into a candlestick chart has meaningful expected results. Once you learn candlestick signals and patterns, you become mentally prepared for taking profits and moving trades in the opposite direction. Join us tonight as we analyze which bearish trades provide the biggest opportunities.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
Stephen Bigalow
