March 2nd Market Wrap-Up
The graphics of candlestick analysis make analyzing investor sentiment very easy. First, analyzing and identifying candlestick signals indicate when there has been a change of investor sentiment. Secondly, the color of each candle indicates the strength of bullishness or bearishness. As illustrated in the NASDAQ chart, it became obvious when profit-taking was occurring during the uptrend. However, the uptrend could still be confirmed in the fact that the T-line continue to act as a bullish trend confirmation. This is an immense amount of information for the stock trader. Candlestick charts make it much more clear when to be taking profits and when to be buying back again. Trend analysis can be applied two analyzing specific sectors that are correlating with the trend of the overall market. This allows for putting all the stars in alignment, analyzing the trend of the market, analyzing which sectors are acting the strongest, then analyzing which stocks in those sectors are producing the best bullish signals or patterns.
There are some huge profits being made in this market rally over the past few months, especially when candlestick charts pinpoint which sectors are acting the strongest. LABU provides the visual evidence that the biotech's have had a strong price move, a pullback/profit-taking, followed by another strong price move. This makes LABU as a viable leverage trade but it also allows the candlestick investor to stand for the strongest chart patterns in the biotech sector.
ESPR after a frypan bottom/trend kicker breakout has produced 150% plus profits.CARA produced a 90% profit coming out of a frypan bottom, now adding to that profitability with a classic pattern.
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The Candlestick Forum Team
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