What will the market do after the most severe sell off in history? A fundamental analyst may project at best a slow market recovery once the virus problem dissipates. But as a candlestick analysis investor, anticipating a market reversal will have a completely different perspective. What produced the rapid selling of the markets? Investor sentiment! Fear! What can every investor in the world analyze about the markets? They are dramatically oversold! As a candlestick investor, what can be anticipated about investor sentiment? When the selling has stopped, anticipate the other investor sentiment, greed! When the investment community recognizes that buying has come back into the markets, expect a massive buying spree.
Fortunately, using candlestick analysis, the signals will indicate the reversal. When you grab for the fallen knife? The candlestick investor has a great advantage, they can recognize the reversal signals that reveal the change of investor sentiment immediately. What is the upside potential? How many people would have anticipated the market selling off with 1500 to 2000 points a day? Unheard of! What could be the potential of a snapback reversal? 3000 points today? Unheard of but not out of the question. Whatever the upside potential, the candlestick investor has the advantage of seeing when the change of investor sentiment has occurred and has a much greater probability of participating in a bullish price move, whether it be a slow uptrend or huge bullish days. This analysis is not to try to anticipate what the reversal move will be, it merely implies that the candlestick reversal signals will have investors in the right direction at the right time.
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Good Investing,
The Candlestick Forum Team
