What are the strongest candlestick patterns? This is a question often asked. But there is no correct answer. In these market conditions, the J-Hook pattern’s and the bobble breakouts are working very effectively. Next week or next month it may be fry pan bottom breakouts or best friend signals. All the candlestick signals and patterns illustrate a strong change of investor sentiment. The reason to recognize each one and understand what that signal or pattern is illustrating is important because specific market conditions could make any of those signals and patterns work effectively. There are numerous J hook patterns producing very strong profits in these market conditions.
The J-Hook pattern and the bobble breakout identification are greatly enhanced utilizing the T-line. This can be illustrated in some of our recent recommendations such as LVGO, SP, CDAY. Because investor sentiment works the same way time after time, the J-Hook pattern provides two strong benefits. First, it is easy to recognize as it is setting up. Secondly, the magnitude of the next wave, wave three, can be calculated based upon the magnitude of wave one. They are usually about the same. Recognizing when a J-hook pattern is setting up provides optimal entry strategies. Also, for the option trader, it allows for very profitable options spreads based upon knowing what the upside target is likely to be. Having the ability to recognize the development of a pattern and its price movement dramatically improves the correct trade ratio as well as the profitability of being in price moves that will move much stronger than mere up-trending stock prices. Join us on May 16 and 17th for the two-day comprehensive training on candlestick analysis. You will learn not only to recognize the signals and patterns but you will also understand the psychology that created those signals and patterns. This gives you the same insights into price movements as an investor with 50 years of trading background.
Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.
Good investing,
The Candlestick Forum team.
