How to learn quickly the effectiveness of the T line rule? Look at any chart that shows a sell signal and a close below the T line, then analyze what the trend did after the close below the T line. This is words of experience. It does not take many times to be sitting in a losing position, hoping for a reversal, wondering why we are sitting in a losing trade again. Simple observation indicates the first close below the T line, especially in the overbought area, was where the long trade should have been closed and start looking for short positions.
The indexes have failed at the T line for the past few weeks, making the 200-day moving average a likely target. The graphics of candlesticks allows investors to see much more clearly what a trend is doing. Obviously, closing out long positions and adding short positions when the market indexes started showing sell signals will dramatically improve your profitability and take the anxiety out of sitting in long positions when the market is going the other way. Join us on October 9 for a Mini spotlight training session on applying the appropriate option strategies to specific candlestick patterns. You will gain great insights into which simple option strategies perform the best based upon the information built into candlestick charts. Click here for more info
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
