The markets are moving in a manner that makes it very profitable trading candlestick patterns. The Dow and the S&P 500 are trading relatively flat. But the NASDAQ continues to trade above the T line, revealing a J-hook pattern in progress. This merely implies the lack of any selling pressure in the indexes, the likelihood of a continued uptrend is fairly strong. These are market conditions that allow the candlestick investor to utilize simple scanning techniques to identify which stocks and/or sectors are producing the strongest bullish signals. Currently, gold prices continue to head higher and numerous gold stocks have produced very strong buy signals. Our recommendation today on GFI was based upon a best friend signal that gapped the price up through the resistance level, indicating wave three is now in progress. The best friend signal, a Doji followed by a gap up, not only produces high probabilities of a bullish trade, but also indicates a strong potential of a very strong profit trade.
The fry pan bottom pattern has been working extremely well in these market conditions. Numerous stocks have been producing profitable trades based upon the identification of a fry pan bottom i.e. NVAX, LVGO, MGNX. There are a number of stocks that have produced fry pan bottom patterns and are currently at breakout levels. The advantage of identifying a pattern at a breakout level means there is no waiting time to see if a pattern breakout is going to perform. CHGG and VIVO broke out through resistance levels today, making them very good high probability trade set ups upon positive opens tomorrow. This is the type of information that allows a candlestick investor to be in the absolute right place at the right time.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
