The combination of the market indexes produced an extremely high probability reversal. The NASDAQ had formed a potential bullish flutter kicker set up on the positive trading yesterday, opening at the previous day’s open and closing higher. The S&P 500 formed an inverted head and shoulders pattern which in the Japanese rice traders terminology is called a three valleys pattern. The Dow, after forming a long leg a Doji yesterday, opened positive today and has now close just slightly above the 50 day moving average. The choppy/indecisive nature of the market will require trading above the 50 day moving average to get it out of its choppy range. This means lower trading tomorrow continues to make the market choppiness still in place.
But these market conditions are still producing extremely strong bullish as well as bearish profitable trades setups. As demonstrated in OCGN, a scoop pattern bullish slingshot affect is in progress. Not only are these high probability directional results, but the magnitude of the profits is extremely strong. Knowing the top-ranked signals and patterns provides very strong profit potential when applying the appropriate option trade strategies to the appropriate price moves. Join us on October 23 for a full-day training on identifying the strongest signals and patterns and then applying the correct option trades to maximize profitability. This training also incorporates solidifying the mental process to be a successful trader intertwined with the analysis. This is an extremely valuable aspect built into candlestick analysis.
Chat session tonight at 8 PM ET. Click here to register.
Good investing,
The Candlestick Forum team
