Although the markets appear to be in the summer doldrums, the benefit of simple candlestick scanning techniques allow investors is still make excessive profits in a lethargic market. This is merely a process of scanning for the strongest bullish or bearish charts. Once they are identified, the added confirmation of those strong patterns continuing to work is the lack of any major change of investor sentiment in the overall market. This is a numbers probability! With over 10,000 trading entities, scans can identify the strongest changes of investor sentiment in specific stocks or sectors. Once they are identified, the continuation of a price trend can be easily confirmed using relevant indicators that reveal a price trend is still moving in the correct direction. Candlestick signals and patterns are the graphic depiction of human nature, the impetus for price movements. The T-line is a natural support and resistance level of human nature. Utilizing both the signals and patterns with the confirmation of a trend with the T-line produces an extremely powerful and high probability trading platform.
The patterns have expected results. The signals have expected results. OSTK continues to move in a bullish direction based upon witnessing the classic pattern, a frypan bottom followed by a J-hook pattern. The major benefit of utilizing the candlestick signals and patterns is the expected results based upon hundreds of years of observations. The same scenario was applied to the recommendation of AZUL, a scoop pattern that was set up with a best friend signal, a Doji followed by a gap up. When you apply the information built into each individual signal to a pattern set up, an investor dramatically improves their probabilities of being in a correct trade at the correct time as well as a very powerful price move set up. An investor does not need to be a sophisticated technical analyst to utilize the information built into a candlestick chart. Knowing what each individual signal illustrates about investor sentiment produces a very powerful analytical platform for establishing profitable trades.
We will conduct a “Members Only” chat session tonight at 8:00 pm EST.
Good Investing,
The Candlestick Forum Team
