A slow up-trending market is very beneficial to a candlestick investor. It allows for high profit patterns to perform without bearish sentiment affecting the upside potential. Currently, numerous J-hook patterns are producing high probability/high profit trade set ups. As illustrated in AMC, the J-hook pattern clearly revealed strong bullish sentiment. This allowed traders in our chat room to produce big profits in options, based upon the expected result of a J-hook pattern. There are numerous J-hook pattern trades set ups in progress, DNMR, SAVA, BNGO, DASH. Fry pan bottom patterns are working well also, i.e. BBW.
The market indexes continue to trade above the T line. There is no exuberance in the slow steady uptrend. The electric vehicle sector is showing strong breakout signals. Continue to stay predominately long, utilizing the strong breakout signals and trend continuation as long as the indexes and individual stock charts remain above the T line. Have a few short positions in the portfolio, DLTR a dumpling top, the opposite of a fry pan bottom. Knowing what should result after candlestick signals and patterns allows the candlestick investor to constantly have investment funds in high probability trades.
Chat session tonight at 8 PM ET. Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
