Often asked questions – the markets are in overbought conditions, should we be taking profits? The markets are at all-time highs, should we be moving back to cash? These questions become non-relevant when utilizing the information provided on candlestick charts. Candlestick investors have a huge advantage by being able to visually evaluate what is occurring in investor sentiment, no matter where the markets are trading. The fact that the markets continue higher at all-time highs provides the correct trading criteria. The T line rule – as long as a trading entity continues to trade above the T line without experiencing a candlestick sell signal, the probability factor indicates the uptrend remains in progress. This is an important element for keeping your emotions out of your trading. It eliminates the flawed investing process of taking profits just because there are profits.
The T-line provides an extremely high probability evaluation factor that indicates when it is time to take profits. The further away you move from the T line, the higher the probability price will come back to test the T line. This makes witnessing candlestick reversal signals excessively away from the T line much more relevant. Join us on November 13 and 14th for a two-day full comprehensive training on identifying what human nature normally does. Candlestick analysis produces a trading strategy that utilizes the common sense built into identifying what is occurring in human nature.
Chat session tonight at 7pm central. Click here to register.
Good investing,
The Candlestick Forum team
