The graphics of candlestick charts revealed a change of investor sentiment was setting up based upon the bullish signals that had occurred over the last few days of trading. The final criteria still needed to be confirmed, a close above the T-line. The bullish sentiment that was illustrated over the past week allow investors to be prepared to start covering short positions that were in the oversold area and starting to show bullish participation. This also allowed for establishing long positions immediately if it appeared the indexes were going to start trading back up above the T line. This is where witnessing the premarket futures showing good strength allows candlestick investors to move instantly and aggressively. Having the ability to identify when a major reversal is about to occur allows for establishing profitable trades at the optimal entry points. This allows for entering profitable trades early.
Join us this Saturday for a Mini spotlight training on which options strategies to use with corresponding candlestick signals and patterns. A combination of calls or puts, with bullish or bearish spreads, is usually much more effective in profitable than merely buying calls or puts on their own. A major advantage of candlestick charts is identifying when a new price move is about to occur. Establishing the appropriate option strategy allows investors to maximize profits well diminishing risks. Click here for more information.
Chat session tonight at 8 PM ET. Click here to register.
Good investing,
The Candlestick Forum team
