The markets were illustrating a build up of bullish investor sentiment over the past few trading days. Today’s bullish trading had a different dynamic. Investor sentiment could be seen building up based upon a frypan bottom pattern progressing as well as the trading continued to stay above the T-line. This created the prospects that investor sentiment is starting to turn bullish. The remaining confirmation was the trading out of the trading range that had developed over the past 30 days. The benefit created by this analysis was having bullish stock positions as well as option positions in place with the prospects that an uptrend might be in progress. As demonstrated, existing long positions benefited greatly to the profitability of the portfolio in today’s trading. All the major indexes gapped up through obvious resistance levels, confirming a frypan bottom pattern build up.
Recognizing the bullish sentiment allowed candlestick investors to have positions in place anticipating more bullish sentiment. That established positions that could take advantage of today’s strong bullish trading. The compelling factor was the evidence that a candlestick chart was producing to have positions already established. Although today’s bullish trading was headline results, today’s positive trading showed a new investment dynamic. Having the ability to recognize bullish signals creating a bullish pattern produces an investment environment for establishing long positions at the appropriate time. This was easily identified with bullish charts in MU, WDC, and NVDA that were establishing strong bullish indications. For the option investor, this allowed for establishing call positions as well as bullish spread positions at the exact appropriate time. This is a major feature of candlestick analysis, allowing for the appropriate analysis at the appropriate times. This weekends comprehensive option strategy training will teach investors how to use the appropriate option strategies with the appropriate candlestick signals and patterns.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
The Candlestick Forum Team
