The strongest candlestick reversal signal is the kicker signal. It is the strongest candlestick reversal signal because it has a gap in price already built into the signal. The kicker signal indicates a dramatic change in investor sentiment. This is usually the result of news or market events that create dramatic new interest in a stock price. Although the market indexes have shown sell signals over the past few trading days, there are still strong bullish charts. These are illustrated by the appearance of extremely strong bullish signals, such as the kicker signal. A prudent portfolio strategy should have a bias toward the downside but not every position in the portfolio needs to be a short position. There will always be strong bullish charts in a downtrend just as there will always be good short positions in an uptrend. Candlestick analysis allows investors to be in the appropriate positions. Currently, the strongest short position sector is the semi-conductors. INTC, AMD, AMAT, MU. Numerous stocks showed failures at observable resistance levels such as the 50-day moving average or the 200 days moving average. Use that information to your advantage. If you want to apply the most basic common-sense investment strategy to your trading, try our two-week free trial. This gives you access to our daily chat rooms, our nightly training, and are suggested stock picks that are in video format so you can see the logic of why a position is recommended.
