A strong trend indicator is one that works an extremely high percentage of the time. A strong trend indicator that works in conjunction with candlestick signals is the T line. The T line produces a very high probability factor. You do not have to take my word for it! Put the eight exponential moving average on your candlestick chart and notice how often it acts as a support level in an uptrend or a resistance level in a downtrend. You can easily back test it. The most powerful element to this strong trend indicator is the number of times prices reverse right at the T line. The reason this is relevant is that nobody has the T line on their charts. It is not like everybody is waiting to see what it does at the T line. The T line becomes extremely effective for keeping investors from being whipsawed in and out of trades. Here is one of the most powerful statements for trend analysis. If candlestick signals are the graphic depiction of investor sentiment and the T line acts as a natural support and resistance level of human nature, a Fibonacci characteristic, adding the two together produces an extremely powerful trend analysis combinations. Join us on the www.candlestickforum.com. You will see a dramatic improvement of your trading analysis.
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Good Investing,
Stephen Bigalow
