The ultimate candlestick pattern is easily visually identified. The ultimate candlestick pattern is one that works with an extremely high degree of probability time after time. The Japanese rice traders identified these patterns through 400 years of observations. The J-hook pattern is one of the most powerful patterns. It also becomes an ultimate candlestick pattern based upon adding additional technical levels that everybody else watches. Witnessing a J-hook pattern supporting at or breaking through a technical level, such as a major moving average, the 50-day moving average or the 200-day moving average, greatly increases the expectation the pattern is illustrating where investor sentiment was turning bullish. With the market indexes demonstrating a relatively indecisive nature, having both long and short positions in the trading portfolio is prudent, and having the ability to identify the strongest/most powerful candlestick patterns gives the candlestick investor a huge advantage. There will be plenty of bullish stock positions identified in an uptrending market. But the candlestick investor has the advantage of identifying which bullish stock price moves will have the strongest profitable potential.
