The sideways mode of the market is very beneficial to the candlestick investor. It allows for scanning for either strong bullish or bearish individual stock chart patterns, knowing the price movement will not be affected by an overall market trend. Currently in this slow up trending market, there has been very strong pattern breakouts. Fry pan bottom patterns have produced some very big profits. This can be seen in the homebuilders stocks,TOL, PHM. Bullish flutter kicker signals have created strong profit trades. When the market is not moving with great aggressiveness in one direction or the other, the big profit trades are going to be the results of candlestick pattern breakouts. This is the result of identifying where human nature starts producing big price moves.
The strength of the earnings in the big traders, AMZN, AAPL, FB, GOOGL should produce more bullish confidence in the markets tomorrow. A positive open in the market indexes tomorrow would produce more evidence the NASDAQ and the S&P 500 are going to continue to trade above the T line. Positive trading in the Dow could bring it back up above the T line. Currently, with a couple of the indexes trading above the T line in the Dow trading below the T line, the market trend analysis is still evaluated as a sideways mode. However, there are still numerous profitable pattern breakouts in progress. Take advantage of the probability factors that result in strong candlestick patterns.
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Good investing,
The Candlestick Forum team
