The market trend is in a transition stage. Today’s positive trading in the indexes provided the possibility of a market trend reversal. However, the full confirmation of a change of investor sentiment requires witnessing candlestick reversal signals in the indexes and a close above the T line. As illustrated, potential reversals have occurred over the past few weeks with candlestick buy signals and closes above the T line, but they did not confirm the signal the next day, closing the indexes back below the T line. This is very important for analyzing what is occurring in investor sentiment. These market conditions allow for analyzing individual chart patterns to recognize which down trending stocks remain in progress and which stocks have produced bullish confirmation. This is what puts the probabilities greatly in the candlestick investors favor.
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Good Investing,
Stephen Bigalow
