Strong trade patterns can be identified using candlestick analysis. The strong trade patterns are already analyzed to produce high probability price moves. This is why the Japanese rice traders have identified them. Currently the markets are moving in a sideways mode, likely the results of the summer doldrums. However, simple candlestick scanning techniques allow for the identification of strong trade patterns both on the bullish side or the bearish side. Numerous J-hook patterns and bobble breakouts have been identified. The results of these trade set ups not only produce a relatively high probability the trade is moving in the right direction, but also with a strong price move. Crude oil dropped by nine dollars today, creating a bearish J-hook pattern. This makes scanning crude oil stocks to identify the strongest bearish signals and patterns. When the market direction is lethargic, not moving in one direction or the other with great resiliency, having both long and short positions in a trade portfolio is prudent. The strong trade patterns create high probability trade expectations.
