The uptrend remains in progress. However, with the Dow trading slightly higher after opening much higher and the NASDAQ continuing to trade higher reveals the nature of this potential next uptrend. It will probably be choppy and sectors/stock specific. This is where simple candlestick scanning techniques allow the candlestick investor to identify which stocks are going to act the strongest. The J-hook patterns are the predominant strong patterns in this market.
There are numerous J-hook patterns that are in the process of breaking out, especially in positive trading tomorrow. APPS is set up for a J-hook pattern breakout. SONO and EHTH were recommended today based upon a positive open confirming J-hook patterns. The major advantage of trading the patterns is that they produce high probabilities that you will be in the correct direction and the magnitude of the price move will be much more excessive than merely up trending stocks during an uptrend. Other pattern breakouts can be seen based upon candlestick patterns. TSLA has broken out of a wedge formation. ARWR will be breaking out of a wedge formation if it opens positive tomorrow. Candlestick investors have great advantages by knowing the probabilities of a price move expectation based upon reoccurring results of human nature. We will be doing a two-day training on how to dramatically enhance your profitability by combining candlestick analysis with the T line. Join us October 17 and 18th for a very comprehensive understanding of how to dramatically improve your probabilities with this combination.
Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.
Good investing,
The Candlestick Forum team
