Numerous candlestick charts are producing high probability/high-profit trade results. This is based upon the convergence of buy signals and buy patterns at the optimal breakout points. Currently, the market indexes have been in steady up-trends based upon the indexes not able to close below the T line. The Dow went from a Piercing signal off the 50-day moving average to the next likely resistance level, the 200 day moving average. That becomes an obvious level to see whether investors were ready to take profits. Today’s trading made that analysis very simple, it formed a Doji. The Doji rule allows for accurate assessment of whether the trend will continue or whether more profit-taking will occur now that the 200-day moving average has been touched. A lower open tomorrow would imply profit-taking at the 200 moving average is now occurring.
Although the markets backed off today, specific sectors produced some very strong bullish patterns. The airline sector has been producing good profits based upon a combination of fry pan bottom and J Hook pattern breakouts. Recognizing the pattern breakout levels allow candlestick investors to enter high probability profit trades at the ultimate entry points. These market conditions are allowing for simple candlestick scanning techniques to identify strong bullish charts as well as strong bearish charts. Be prepared for some profit-taking in the market indexes, making having both long and short positions in the portfolio for the next few trading days the viable strategy. Join us this weekend June 6, for a spotlight training on how to recognize the set ups for the explosive breakout moves.www.stephenbigalow.com/Identifying-Breakouts
Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.
Good investing,
The Candlestick Forum team.
