The Dow continues to trade higher, the NASDAQ is trading lower. This allows for simple candlestick scanning techniques to identify the strongest bullish charts as well as the strongest bearish charts. This allows for profiting in both long and short positions at the same time. The market is very sector-specific. The steel stocks, oil refining stocks, and mining stocks are producing good bullish trades. The high-tech/computer-related stocks have produced good short positions. The major advantage of candlestick analysis is being able to quickly identify which stock/sectors are moving in a specific direction. Currently, the NASDAQ has sold off to the first obvious support level, the 50 days moving average. This alerts the candlestick investor to watch more diligently to see if any buying starts coming in the short positions. Logically, buy signals would warrant taking profits in short positions and getting ready for bullish reversals.
Big profits can be made on bullish breakouts. When there is not any bearish sentiment in specific sectors of the market, any good news will stimulate stronger buying because of the lack of selling fears. This was illustrated in numerous stocks today,AVID, BCRX, HL that get exaggerated price moves because there is no bearish sentiment fears. Take advantage of the candlestick signal breakouts during these market conditions. Many strong price moves are identified early in the Candlestick Forum chat room. This provides a valuable source of getting into strong trades early when many eyes are looking for the same pattern breakouts following candlestick signals.
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Good investing,
The Candlestick Forum team
