April 3rd Market Direction
The markets closed near the higher end of their trading range today, producing Doji/hammer type formations. This indecisive trading The indexes at or very close to the T-line, revealing that there is no major selling pressure in the markets. Because of the indecisive sideways movement of the market over the past four weeks, each individual sector/stock has been producing the prominent analysis. Specific sectors continue to act as the predominant feature for trading these market conditions. The indecisive sideways mode of the market is providing the 50 day moving average, an obvious support level, to catch up with the slow sideways drifting trend. When the 50 day moving average finally catches up to the market trend, watch for the prospects a very strong bullish signals. This is a support level that everybody managing money will be watching.
Although the market conditions show indecisive sideways trading, candlestick analysis/scanning allows for pinpointing which stocks are producing the best pattern profitable results. The frypan bottom breakout seen in the COOL has produced very strong profits. Candlestick patterns have expectations. They allow investors to easily identify when to enter a strong trade, maintain that trade, or close out the position immediately. This is all based upon reoccurring human nature that have provided consistent patterns throughout the centuries. Knowing what human nature reactions will be based upon producing patterns allows not only to be in the right trade at the right time, but also being in the very strong price moves at the right time.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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