The Dow produced a very obvious reversal signal, a MorningStar signal, one of the 12 major candlestick reversal signals. Additionally part of the signal had an inverted hammer signal. The inverted hammer signal alone in the oversold area, getting positive confirmation has a 95% probability or greater of an uptrend starting. Today’s positive trading, closing the Dow and the NASDAQ well above the T line also dramatically improves the probabilities that the uptrend has started again.
The best way to take advantage of an uptrend in the markets is defined the stocks that have the strongest bullish candlestick signals. The best friend signal is a powerful bullish indicator, a Doji followed by a gap up. As witnessed in our accumulation of
QS, the best friend signal of this week has produced excessively strong profits.VET was recommended because of the best friend signal yesterday which would be a strong indication a J-hook pattern was in progress. A major advantage of candlestick analysis is that it not only identifies the direction of a price move but can identify the signals/patterns that are going to produce the strongest price moves. Join us October 2 for a free Saturday training session on which option strategies to utilize to maximize the benefits of strong candlestick price patterns.
Chat session tonight at 8 PM ET. Click here to register.
Good investing,
The Candlestick Forum team
