Should you be buying this market now? This is a question you do not have to ask when using candlestick analysis. The buy signals occurred on Monday of this week, after witnessing candlestick reversal signals bouncing up off major support levels. Why do most people ask whether to be buying now? That is normal human nature! They want to be convinced the buying is real. But that is usually getting to the areas where the smart investors are thinking about taking profits. When you are confident that candlestick signals reveal what is occurring in human nature, you can take advantage of buying at levels that most investors are still hesitant to be buying. This puts you in positions where you are buying with the smart money. Instead of thinking about whether you should be buying at these levels, the candlestick investor entering trades at the first signs of reversals in investor sentiment is now ready to take profits when the normal investor is thinking about buying.
There have been huge profits created from strong reversal signals that formed just this week. Simple scanning techniques revealed the electric vehicle sector was showing new strength. A major advantage of being a candlestick investor is recognizing when it is time to take profits in one sector and start rolling into sectors that are just starting an uptrend. Taking profits in specific sectors that are currently trading up strong will free up capital to go into new sectors that are showing new strength, such as gold stocks just starting a new uptrend. The visual aspects of candlestick signals allow an investor to evaluate when it is time to get in to a trade and when to get out. This allows for placing funds in stock/sectors that have a high probability of producing good profits, taking profits, and rolling into new high probability trades set ups. The strength of new stocks/sectors are clearly illustrated using candlestick signals followed by gaps. Join us tonight for analyzing how to use gaps with candlestick signals to produce big profits.
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Good investing,
The Candlestick Forum team.
