The strongest candlestick signal is the kicker signal. The strongest candlestick signal is clearly identified by a gap up in price, above the previous day’s open and then continuing to trade further in that direction. All the indexes exhibited bullish kicker signals today. This was the result of inflation indicators modifying. Knowing how a kicker signal is formed, gapping up above the previous day’s open, immediately alerts for the covering of short positions. Simple candlestick logic indicates if a stock price is in a downtrend and the next day they opened and at or above the previous day’s open, there has been a dramatic change in investor sentiment. This not only activates closing out short positions but also instigates going long. As illustrated in today’s trading, lower-than-expected inflation numbers provided strong bullish sentiment. Does this mean inflation is disappearing? As an investor, that does not matter! What matters is the decisions everybody else is making as far as buying or selling positions. Although the kicker signal demonstrates a very strong bullish sentiment, expect some profit-taking to occur early on Friday after the big percent move the markets created today. An additional bullish confirmation is the T line. Join us Saturday, November 19 for a full day training on how the T line, acting as a natural support and resistance level of human nature, dramatically improves the probabilities of being in correct trades based upon the information built into candlestick signals.
Chat session tonight at 8 PM ET. Click here to register.
Good investing,
Stephen Bigalow
