Eliminating trading emotions is greatly simplified using candlestick charts. What is the biggest foobar when it comes to investing? Our own emotions! Eliminating trading emotions is simply utilizing candlestick signals and patterns in conjunction with the T line. The T line is used as the ultimate trend factor. Once a trend has started because of a candlestick reversal signal or pattern, maintaining the position is much easier by merely utilizing the T-line rule. As illustrated in the Dow, the J-hook plus pattern revealed much stronger probabilities of an uptrend continuing. Add the NASDAQ and S&P 500 analysis, both trading above the T line, assuming the bullish sentiment controls this market. This allows the candlestick investor to take advantage of price patterns likely to confirm based on the lack of any bearish sentiment in current market conditions. This allows investors to put all the stars in alignment. Because candlestick analysis merely recognizes the signals and patterns that Japanese rice traders have observed for hundreds of years, very quick visual analysis allows candlestick investors to pinpoint which trades have the highest probabilities, both bullish and bearish.
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Good Investing,
Stephen Bigalow
