Is the market trend reversing? Candlestick signals at relevant technical levels, that everybody else is watching, produces good evidence the bulls are starting to take control again. The Dow formed a MorningStar signal today, off the 34 EMA, and closed above the T-line. The NASDAQ gapped up, above the open of Friday, and formed a Doji. This sets up a strong probability that a positive open tomorrow is going to create a bullish flutter kicker signal, one of the strongest reversal signals, and the likelihood of closing above the T-line. This adds good evidence the uptrend may be back in progress. Utilizing the transportation index also allowed for assuming there was not going to be a major reversal in the markets with the simple logic that if one index is trading strong while other indexes are trading lower, it merely indicates funds moving from sector to sector, not leaving the market.
Fry pan bottom patterns continue to produce very strong profitable trade results. A number of fry pan bottom patterns are in effect, i.e. WKHS, DAR, PENN, DKNG. All boats will rise in a rising tide but the results of candlestick pattern breakouts are boats that are going to rise a heck of a lot faster. The information built into each candlestick signal allows the candlestick investor to have a much more clear analysis of a price move based upon the historical results of the candlestick signals and patterns. This also creates a trading program that dramatically reduces emotional trading. Expected results that have been proven for hundreds of years, based upon normal human nature reactions, allows the candlestick investor to be in high probability trades with a high degree of accuracy.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
