There are two very effective candlestick rules that produce extremely high probability trades. The T-line rule simply states that a trend has an extremely high probability of producing an uptrend if prices close above the T-line. If prices close below the T-line, the probabilities are extremely strong a downtrend will be in progress. The Doji rule simply states that prices will usually move in the direction of how prices open after a Doji. This easily produces very profitable trades when combining the overall market trend analysis along with individual stock price analysis. Adding short positions to the portfolio had been recommended for the past couple of days based upon the sell signals that had formed in the indexes. The Doji rule helped identify which stock positions to short immediately on a lower open based upon the set up of bearish Doji sandwich signals. With the market indexes trading below the T-line, the prognosis remains strong for more downside.
