November 17th Market Wrap-Up

The T-line is an effective trend indicator. It acts like a natural support and resistance level of human nature. It is an effective trend indicator because it’s got Fibonacci characteristics. Candlestick signals are the graphic depiction of investor sentiment. The T line is a natural support and resistance level of human nature. When you combine these two elements, you have an extremely effective trend indicator combination. As illustrated in the Dow over the past few trading days, candlestick sell signals performing in the overbought condition. This implied a strong probability of the Dow returning to the T-line area. The NASDAQ had moved excessively away from the T line. The T line has a truism, the further away you move from the T line, the higher the probability is going to come back and test it. Today the indexes opened lower but use the T line as a support. The close above the T line produces a high probability the uptrend is still in progress until there is a close back below the T line. This consolidation stage of the market allows candlestick investors to identify strong bullish chart patterns as well as strong bearish chart patterns. Simple candlestick scanning techniques allow the candlestick investor to potentially make good profits by having both long and short positions on when the markets are in an indecisive stage. Join us Saturday, November 19 for a full day training on how the T line greatly improves your visual ability to analyze when it is time to buy, when it is time to sell, and when to maintain a trending position.

Chat session tonight at 8 PM ET. Click here to register.

Good investing,

Stephen Bigalow