October 15th Market Wrap-Up

Market consolidation or trend reversal? That question is much more easily assess using candlestick analysis charts. Today’s gap down open was further consolidation that had been expected from the analysis of the market indexes over the past few days. Monday demonstrated a gap up in the overbought condition, especially in the NASDAQ. This produces a high probability of exuberance. The Japanese rice traders advise getting ready for profit-taking when you see a gap up in the overbought area. What was the expected pullback? The T line becomes a logical area to watch to see whether prices would support at that level. Today’s trading, gapping down below the T line in the indexes, was either a major reversal or the end of the current consolidation. Candlestick charts provide a much more clear indication of whether it was merely the end of the consolidation. Note how the NASDAQ immediately started trading higher after the open. Additionally, flipping to the 10-minute chart would reveal bullish patterns be in created. Join us this weekend for a full two-day comprehensive training on how to apply the T-line to the analysis of candlestick signals and patterns to dramatically improve your profitability. This is information that will greatly improve your trend analysis for the rest of your life. Click here to join.

Knowing, with a high degree of probability, the direction of the overall market trend allows the candlestick investor to take advantage of high-profit candlestick patterns. There are numerous J-hook patterns setting up. Not only does this allow investors to be in the right direction at the right time, it also allows for the projection of the next price move, wave one and wave three being equivalent. FRTA, CVET, ALSN, ENPH, and DY are all strong examples of high probability J-hook pattern trades setups. Note how the T line greatly enhances the probabilities of recognizing the pattern set up. Take advantage of the information that has worked effectively for centuries. The most consistent price indicator is human nature.

Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.

Good investing,

The Candlestick Forum team.