When to take profits is much more clearly defined using candlestick analysis. When to take profits is based upon witnessing investor sentiment changing. Currently, the market trend is bearish based upon the indexes continuing to trade below the T line. However, today the Dow and S&P 500 form Doji’s in the oversold area, the NASDAQ formed a bullish Harami. The probabilities of a bullish reversal or a bullish bounce is greatly enhanced based upon how the premarket futures illustrate where the market indexes will open tomorrow. Remember the Doji rule, a trend will usually move in the direction of how they open after a Doji. This becomes more relevant when the training is in the oversold or overbought condition. The graphics of candlestick signals and patterns reveal when it is time to take profits in short positions even though there are not buy signals and a close above the T line. The bullish signals in a downtrend, especially in the oversold condition, illustrate when investor sentiment is changing
http://www.stephenbigalow.com/2-week-trial
Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join
Good Investing,
Stephen Bigalow
