Wouldn’t you like to put all the probabilities in your favor? Candlestick analysis does that for you. With great accuracy, you can analyze the direction of the overall market. You can then analyze which sectors are showing the strongest charts. And finally, you can identify which are the strongest individual stock chart candlestick signal/patterns that will produce the strongest price moves. This is putting all the stars in alignment.
This past week, the market indexes produced an extremely high probability reversal pattern, the McMuffin. Simple logic! The McMuffin is formed with a MorningStar signal, one of the 12 major candlestick reversal signals. Expectation? An upside reversal. It was immediately followed by a Doji sandwich, also producing high probability results, more upside. Adding these two signals together produces double the probabilities of more upside.
When you can see the direction of the overall market, simple candlestick scanning allows for the identification of which sectors are producing the strongest signals. Then it is a simple process to scan each sector for the strongest individual stocks. You now have identified trades that give you the highest probabilities of not only moving in the correct direction, but also with good strength.
The REITs are producing strong reversal patterns. Watch these stocks, VTR, ABR, EFC. The shipping sector is producing good bullish patterns. STNG, TNK. The specialized health sector has shown good reversal signals, APT, SDC, TVTY, EHC.
You will discover that you can sleep much better at night knowing that you have established positions in strong sectors enhanced with the strongest individual stock chart patterns in those sectors. Take advantage of this information, there are hundreds if not thousands of stock charts that are showing potential reversals. You want to be able to elevate your profitability by being in the best bullish charts.
