Options trades at candlestick reversals produce much greater risk/reward factors. Option trades candlestick reversals allow investors to enter option trades at low intrinsic values and without excessive premiums built into the option prices. Candlestick reversals illustrate the change of investor sentiment. This allows the candlestick investor to immediately identify trade reversals that will usually expand option prices rapidly. Having the ability to recognize when investor sentiment is just starting to change, based upon candlestick signals, allows for entering option prices when the general public has not yet decided to buy. This produces a double benefit. Being able to buy options at a cheap price and benefiting from the option premiums expands when investor sentiment continues to gain confidence.
The Dow formed a MorningStar signal that closed above the T line. This was strong evidence there had been a change of investor sentiment. Although the NASDAQ did not show a reversal signal, the fact that it gapped up above the T line the next day was additional confirmation that investor sentiment had turned bullish in conjunction with bullish confirmation in the Dow. Numerous MorningStar signals have formed. Probabilities say that it is more beneficial to buy reversal signals based upon the expected results observed by Japanese rice traders over hundreds of years versus merely buying stocks that had upward movement but not a confirmed candlestick reversal signal. Go with the probabilities! The signals have proven results. Join us Saturday, March 26 and 27th for a two-day comprehensive training on identifying the signals and patterns and understanding the logic that produced the signals and patterns. This combination allows you to analyze market/price movements with the same expertise as an investor with 50 years of experience. You will get more information than you anticipate. Click here for more information.
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Good Investing,
Stephen Bigalow
