February 16th Market Wrap-Up
Candlestick patterns produce huge profits by allowing the candlestick investor to identify breakout pattern setups. Because the candlestick formations illustrate investor sentiment, they are very effective for not only identifying where a possible breakout is about to occur, but they also are very instructive for knowing what to do after a breakout has occurred. A major benefit of candlestick analysis is that it puts investors in situations where participating in a big profit breakout situation is highly probable. Because candlestick signals and patterns are based upon the reoccurring reactions of investors, they accurately indicate when a big price move is about to occur. Does this mean that every pattern set up is going to produce big profits? Definitely not, but it does put an investor in situations where the probabilities of being in a big price move is greatly in their favor.
Pattern breakout's can be seen based upon frypan bottoms, J-hook patterns, or bullish candlestick signals at important support or resistance levels. Investor sentiment works the same way time after time, day after day, century after century. Learning how to identify a big price move is relatively easy using the graphics developed from candlestick analysis. There are many technical trading methods in the investment arena. However, none is so back tested and confirmed as candlestick signals. This is a process that has developed over 400 years. The Japanese Rice traders that developed candlestick analysis did not become wealthy, they became legendarily wealthy. No matter what investment trading technique you are utilizing, if you overlay candlestick charts in your analysis, you can see price moves with much more clarity.
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The Candlestick Forum Team
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