Big profits in a downtrend is simplified using candlestick indicators. Big profits in a downtrend can also be maintained using the T line rule, keeping your emotions from taking profits to soon. As witnessed in the market indexes and numerous individual stock charts, the bearish J-hook pattern indicated high probabilities of a wave three to the downside. Knowing the magnitude of wave three, be in the same as wave one, allows the candlestick investor to remain in profitable positions overriding emotional decisions to take profits merely for the sake of taking profits. A major benefit of candlestick analysis is implementing the sage advice of cutting your losses short and letting your profits run. Candlestick charts make that process very easy to implement. The graphics of candlesticks dramatically improves your ability to keep your emotions out of your trading. The current market trend, although in the oversold condition, has not yet showing any signs of a bullish reversal. Is the oversold condition relevant? Of course, but if investor sentiment does not show any change, a market/price trend can remain oversold for many weeks or months. These are market conditions that allow for very attractive put spreads.
