The graphics of candlestick signals in conjunction with an extremely accurate trend indicator, the T-line, dramatically reduces emotional stress and decision-making. The logic is built into each individual candlestick formation allows the candlestick investor to much more accurately assess what the investor sentiment is doing during a trend and/or at the reversals of a trend. This could easily be seen when the Dow broke out of the wedge type trading range of the past few months. The breakout candles did not show any hesitancy going through the resistance levels, almost a bullish kicker signal through that level. This indicated there was going to be more upside after it broke out. The information built into each candlestick signal or formation allows for a much more accurate evaluation of what the strength of the next price move will be, whether analyzing the market indexes or an individual stock chart. Logic dictates that if the overall market trend can easily be evaluated, such as a clear indication more upside in the markets is expected based upon the candlestick charts, investing in the strong individual stock charts produces much more profitability by expecting the results of a candlestick pattern breakout to provide big profits without bullish sentiment being diminished by the overall market appearing to head lower. The current market trend has not demonstrated any sell signals nor traded back below the T-line. The assumption remains that the uptrend is still in progress.
The information built into each candlestick signal reveals exactly what is going on in investor sentiment at observable support and resistance levels. The bullish Harami illustrating the selling had stopped in NFLX right at the 50 day moving average support level. The bullish Harami provides an extremely high probability trades set up knowing what the signal illustrated. Having the ability to analyze what the investor sentiment is doing at levels that everybody else’s watching allows the candlestick investor to enter trades much earlier in a profitable trade than other trading strategies. After entry, price patterns and/or the use of the T-line greatly enhances the profitability of a trade.
We will conduct a “Members Only” chat session tonight at 8:00 pm EST.
Good Investing,
The Candlestick Forum Team
