April 24th Market Direction
There was more vital information illustrated in today's trading above merely the strong bullish action. Over the past two months, the Dow and S&P 500 have been in a slow drifting downtrending channel. Today's positive trading gapped up through the top resistance level, as well as above the 50 day moving average. For the candlestick analyst, this demonstrates a strong move into new territory, likely creating a new wave three to the upside. The NASDAQ had been butting its head on a resistance level over the past two months. Today's gap up breached that level, indicating a new wave to the upside. These breakouts through resistance levels reveal a new dynamic in bullish sentiment. The bullish sentiment appears to be derived from the elimination of the left in the French elections as well as tax reform expectations from the Trump administration. The strength of the bullish sentiment is illustrated with the extremely strong gap up through the resistance levels.
Today's positive trading improves the probabilities of candlestick patterns performing as expected. AMZN has the prospects of a J-hook pattern breakout, producing another hundred points to the upside. CC gapped up today forming a bullish Doji sandwich which is further confirming the scoop pattern. This produces a high probability that a strong uptrend will continue based upon a scoop pattern slingshot effect. The frypan bottom creates two powerful trade results. First, it produces a high probability of a positive trade. Secondly, the confirmation of a frypan bottom breakout produces inordinate profits based upon very strong price moves coming out of the pattern. The analytical ability to see what the likelihood of the market trend will be adds greater probabilities that high profit candlestick patterns will perform as expected without the offset of a major change of the overall market conditions. Essentially, candlestick analysis allows you to put all the stars in alignment to dramatically improve your probabilities of not only being in the right direction at the right time, but also in positions that are going to produce extremely high profit returns.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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