Sector trading is the relevant trading strategy in these market conditions. Sector trading emphasizes specific sectors that are moving with much greater strength, either in a bullish trend or a bearish trend, when the market conditions start showing indecisive movement. The artificial intelligence sector has been in the limelight for the last few months. Candlestick scanning identifies which stocks are moving the strongest in an industry everybody is touting. As illustrated in today’s trading, SOUN broke out through a resistance level and had the prospect of heading much higher. CXAI performed a solid bullish candle off the T line following a slow curve setup. Recognizing the candlestick signals and patterns in a strong sector pinpoint which stocks have the best prospects. Good money management also dictates having both long and short positions in the portfolio when the market indexes are at levels that show indecisiveness, the prospect of moving in either direction. The primary benefit of candlestick signals and patterns is establishing trades, for the probabilities are significantly in your favor.
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Good Investing,
Stephen Bigalow
