Candlestick investors have a distinct advantage. The graphics of candlesticks allows an investor to take profits at the appropriate time, not always having a sell signal occur. As illustrated in the market indexes last week, the gap up in the overbought condition was an alert to start taking profits. Where do most people buy? Exuberantly at the top! This is constantly professed by the Japanese rice traders that had studied the graphics of human nature for hundreds of years. Join us tonight with a demonstration of the indicators that human nature produces for when it’s time to take profits.
Another major benefit of candlestick patterns is not only the direction and magnitude of a price trend, but also the residue strength that continues to keep that pattern from selling off if/when there is a strong market reversal. This is illustrated in our recommendation on TUP and SHLL, fry pan bottom continuation patterns. Our recommendation on ANF was based upon a bobble breakout/J Hook pattern which also will continue to show strength in spite of the overall market trend. The underlying factor of candlestick analysis is that it puts investment funds in the appropriate trades at the appropriate time. This dramatically improves the probabilities of producing profits in spite of the overall market direction
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
