June 27th Market Wrap-up

The nature of each candlestick signal/formation provides a much more comprehensive insight into the strength of the Bulls or the Bears. Witnessing a signal at important technical level, such as the Dow forming a Doji day right on the T line provides a visual analysis that will indicate the direction of the trend based upon the Doji rule, the trend will usually move in the direction of how they open after a Doji. A positive open tomorrow would reveal the T line acting as a support for the Dow. The NASDAQ and the S&P 500 are also showing potential reversal signals at the T line. The NASDAQ confirmed a homing pigeon signal, a Harami that has both candles the same color, by trading positive today and backup above the T line. Although today’s trading did not illustrate a major reversal in the markets, at least the candlestick formations indicated there was not currently any significant selling pressure. This was further evidenced by the number of bullish chart patterns versus the number of bearish chart patterns in today’s trading.

The strong patterns allow for not only identifying the direction of the next potential price move in individual stock charts, but it also provides the opportunity to participate in much stronger price moves than merely uptrending stock prices during an uptrending market. The J-hook pattern, more specifically the bobble breakout patterns, are providing high probability/high profit trade set ups. A candlestick investor gains excessive visual analysis information based upon the patterns that produce expected results. Identifying a pattern breakout at the T line level enhances the probabilities of being in a strong profitable trade. The T line, working in conjunction with candlestick signals and patterns, dramatically improve the probabilities of entering and maintaining high profit positions. Candlestick trainings direct investors to trade set ups that produce high profit results based upon the reoccurring nature of investor sentiment.

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Good Investing,

The Candlestick Forum Team