After the bearish left/right combo formed in the indexes over the past few days, today’s trading initially traded lower as expected. However, the next assessment is very easy for the candlestick investor. What were the indexes doing when it reached the T line? As demonstrated, the indexes traded lower than closed above the T line. This makes the probabilities extremely strong the market trend is still in an uptrend as long as the indexes close above the T line. The NASDAQ produces a much more clear trend indication, opening at the T line and trading positive on the day, forming a bullish engulfing signal right at the downtrending resistance level. A positive open tomorrow in the NASDAQ will create a very bullish confirmation. Although the market indexes are in a slow uptrend, they are still in a very choppy mode. Fortunately, convergence analysis makes the probabilities of consistently producing profitable trades very easy. Convergence analysis is merely the visual process of recognizing multiple confirmation indicators in conjunction with a candlestick reversal signal or pattern breakout. The more indicators that can be visually recognize with an instantaneous glance, the higher the probability a price move is likely to occur.
The electric vehicle sector and the lithium mining sector have produced excessively large profits over the past five trading days, BLNK and KNDI have doubled in price during that time. Participating in these price moves are greatly enhanced when the candlestick investor can visually recognize more than one confirming indicator that is likely to produce an uptrend and a very strong uptrend. The logic built into candlestick analysis provides an extremely high probability result. This allows the candlestick investor to consistently put on trades that have much greater probabilities of producing profits on a consistent basis. Join us this Saturday, November 21 for a full day training on utilizing all the information built into candlestick signals and patterns that are enhanced by multiple confirming indicators. This type of visual analysis is what can dramatically improve your profitability and consistent profitability.
Chat session tonight at 8 PM ET. Click here to register.
Good investing,
The Candlestick Forum team.
