The accuracy of the analysis of the overall market trend is greatly enhanced with candlestick analysis. The signals and patterns make it very easy to see whether there is an uptrend, a downtrend, or the market is moving sideways. The market indexes are currently trading above the T-line but in a very indecisive/sideways mode. However, this is not a deterrent for making good profits using candlestick analysis. At any point in time, simple candlestick scanning techniques pinpoint which sectors are acting the strongest or the weakest. Frypan bottom pattern breakouts demonstrated the electric vehicle sector and sectors that supply electric vehicles were showing very strong prospects. The pattern breakouts have now produced excessively strong profits even though the overall market trend has been sideways for the past few weeks. BLNK has moved from the $8.00 area to the current $36 area over the past six days of trading. Numerous stocks in that sector have moved with the same profitability. There is a huge added benefit for identifying pattern breakout potential situations. It not only allows for being in a price move that is in the correct direction with a high degree of probability, but it also puts investors into situations where huge price move potential is greatly enhanced. This creates a very simple trading strategy premise. Putting funds into high probability expected trade setups dramatically improves being in the correct trades at the correct time as well as dramatically improving profitability for the portfolio.
You do not have to be a skilled technical analyst to benefit from the information built into candlestick charts. It is merely the graphic depiction of human nature that have been identified as high-profit trade setups through hundreds of years of visual analysis from the Japanese rice traders. All you need to learn is what usually occurs after specific candlestick signals and patterns. The results are high probability results. This is because human nature works the same way time after time. Currently, electric vehicles, lithium mining stocks, and oil related stocks are all showing good strong buy signals. Having more weight in the sectors improves the probabilities of being in profitable trades.
Chat session tonight at 8 PM ET, identifying the best sectors.
Good investing,
The Candlestick Forum team
