Reading candlestick charts produces a huge advantage for investors. Reading candlestick charts visually identifies high probability trade set ups. The first step is knowing with relatively good accuracy the general direction of the overall market trend. The next process is identifying the strongest candlestick signals and the patterns that may be developing based upon the information produced by the signals. The current market trend is in a bearish mode with the bearish J-hook pattern confirming. As illustrated in the NASDAQ and S&P 500, the bearish J-hook pattern is being confirmed with a bearish best friend signal, one of your strongest candlestick signals. The visual aspects of candlestick charts visually identifies high probability trade expectations. The current downtrend is being instigated by high inflation, raising the interest rates, and the administration’s energy policy that is keeping gas and heating oil prices extremely high. The lack of any policy changes is resulting in any lack of change of investor sentiment. There is great anxiety in the majority of investors. But as a candlestick investor, being able to identify when the downtrend was starting and being able to accurately assess the downtrend remaining in progress, there is no anxiety. Being in cash or in ishort positions produces a comfortable trading mode. How long will the downtrend persist? Until there is a strong candlestick bullish signal and a close above the T line. When you grab for the fallen knife? Reading candlestick charts allows for identifying when the downtrend has ended. Join us in learning the common sense logic incorporated into candlestick charts. Try our two week free trial. What do you have to lose? You will gain a lot more valuable insights into investing than you expect. Email abraham@candlestickforum.com to take advantage of the learning information in our daily chat rooms.
