The most powerful candlestick patterns provide a very accurate market analysis. The J-hook pattern is one of the most powerful candlestick patterns, providing a high probability trend direction as well as an excessive profit move. The J-hook pattern has a very simple measuring element. Wave one is usually going to produce the same magnitude move in wave three. Currently the market indexes have remained in uptrends after the Fed announcements, raising interest rates. The T line provided additional confirmation the J-hook pattern was in progress. Additionally, if wave three reaches the same magnitude as wave one in the NASDAQ, it will have breached the recent high of the downtrend for the first time in the past six months. This provides good evidence that the downtrend may be over. However, the breach of that recent high of a few weeks ago needs to be confirmed. Otherwise the downtrend remains in progress. When the market indexes are producing J-hook patterns, individual stock prices will also reveal the same patterns. Take advantage of the information built into these candlestick signals and patterns that have produced high probability results for centuries. Human nature works the same way time after time.
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Good Investing,
Stephen Bigalow
