What do you buy when the market is up strong? That is what makes candlestick analysis more clear, the positions that are producing big profits were already established based upon candlestick patterns. The simple process of analyzing the market trend and scanning for the strongest stock/sectors during an uptrend allows the candlestick investor to already be in trades at the appropriate levels. Current profits in many positions is not 5%, 10%, 15%, but more in the ranges of 30%, 60%, 100% plus. Utilizing the T line also helps from taking profits too early, a syndrome that keeps most investors from producing anything more than mediocre returns. The J Hook pattern, bobble breakout pattern, and the fry pan bottom breakout has produced excessive profitability during this uptrend.
BA exhibited a fry pan bottom breakout. Numerous other recommendations have produced huge profits based upon a combination of fry pan bottom patterns, followed by a J-hook pattern, called the classic pattern. Do not take profits just for the sake of taking profits. This is one of the big mistakes most investors make. At worst, take profits on partial positions. But until there is an identifiable market reversal and/or individual stock positions reveal sell signals and a close below the T line, the markets continue to reveal the uptrend is in progress. Take advantage of what investor sentiment is demonstrating.
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Good investing,
The Candlestick Forum team.
