The buildup of investor sentiment in specific candlestick patterns has the probability of producing bullish trade profitability even when the overall market is selling off hard. Our recommendation on CLSK a set up for a frypan bottom pattern. It traded up 28% on the day. The candlestick investor has the advantage of having positions in the portfolio that are still going to produce profits or at least not selloff dramatically when the overall market is selling off.
Two notable candlestick factors are being illustrated today. First, the T line rule! As the indexes were demonstrating, when trading below the T line, the probabilities of the down trend is extremely strong. Although the Dow appeared to be supporting at the 50 day moving average on Friday, it did not do any candlestick formation that illustrated the bulls were back in control. The NASDAQ and the S&P 500 did not show any evidence of bullish sentiment on Friday, trading below the T line, indicating more downside. Secondly, numerous recent recommendations, that were based upon candlestick patterns, are holding up well, either trading positive, CLSK, VVPR, SHLL, ZM or trading relatively flat today PEIX,WKHS,APPS. This demonstrates an underlying benefit of trading pattern. It allows for more time to get out of a trade reasonably well even though the overall market is dropping heavily.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
