An impressive aspect of candlestick analysis is not only being able to identify pattern setups, but also allowing you to pinpoint the exact timing to get into successful trades. As illustrated in some of the frypan bottom breakouts, candlestick signals reveal the confirmation of the pattern breakout at the exact time to enter the trade.LCID was clearly identified as a breakout based upon a trend kicker signal. This is a 2+2 analysis, identifying a strong bullish signal at a major breakout level. Rhetorical question – do all breakout moves produce huge profits? Definitely not, but utilizing candlestick signals at pattern breakout levels dramatically improves the probabilities of being in a price move with significant profits.
The confirmation of patterns are greatly enhanced utilizing the T line. This trend confirmation indicator dramatically improves the probabilities for entering a profitable trade, maintaining a profitable trade, and illustrating when it is time to close out a trade. Most investors have the problem of having some of their positions trading up while others are trading down, producing a mediocre result. Candlestick analysis alleviates that scenario. Combining the candlestick signals and patterns with the T line dramatically improves the probabilities that a vast majority of portfolio trades will be moving in the correct direction, some with big profit results.
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Good investing,
The Candlestick Forum team
