Identifying breakouts becomes relatively easy when using candlestick signals with breakout levels. Identifying breakouts is merely witnessing a strong candlestick signal that takes prices up through a resistance level everybody else is watching. For a trader, identifying breakouts provides trade setups that are going to move prices exuberantly fast, versus waiting for a price to move up if the market moves up. Currently, the indexes are showing J-hook patterns which would imply more upside. However, aggressive buying tomorrow is not prudent based on a long holiday weekend coming up. This does not deter from buying strong breakout signals. Still, statistically, when the market moves positively going into a long weekend, the reverse trading action will occur after a long weekend. These type of trading truisms can be much more easily confirmed using the graphics of candlestick signals.
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Good Investing,
Stephen Bigalow
