Last week, the bullish flutter kicker signal produced very strong evidence the Bulls were stepping back in with great force. This indicated the sideways wedge formation in the indexes was still intact. That evaluation provides a strong expectation for establishing or maintaining positions in the portfolio. Investor sentiment was revealing a lack of major bullish pressure as well as a lack of a major bearish pressure in the overall market trend. This makes the analysis of each individual stock chart the most predominant factor. The lack of any major trend movement reduces the prospects that uptrending bullish candlestick patterns will be reversed due to any strong market selling. Short positions have the same results, downtrending stock positions can be maintained with the lack of any significant bullish pressure in the markets. Simple candlestick scanning techniques reveal shipping stocks as a strong bullish sector and the weed stocks are still downtrending, good short positions.
When the market indexes are in a sideways mode, the candlestick investor has a great advantage of being able to analyze which stock charts are producing pattern setups for identifying the potential of big breakout price moves. A candlestick pattern, moving up to a observable resistance level, produces an extremely high probability of a correct trade result. But more so, this set up has the prospects of producing excessive profit movements. Because human nature works the same way time after time, it produces a great advantage for the candlestick investor that understands why eight pattern is being created. A frypan bottom pattern coming up to a resistance level, as illustrated in the NVDA chart, produces an expectation of a strong breakout if that resistance level is breached. Numerous candlestick patterns, in conjunction with a candlestick signal at a breakout level dramatically improves the probabilities of being in a very strong price move.
We will conduct a “Members Only” chat session tonight at 8:00 pm EST.
Good Investing,
The Candlestick Forum Team
