May 1st Market Direction
Candlestick analysis cuts through the rhetoric. If you listen to one political party, things are not getting better. If you listen to the other political party, things are getting better. As an investor, how do you dig through all the political spiel's? You don't have to! The candlestick charts will illustrate what everybody is doing based upon the information that's available to everybody. Currently, the market indexes have broken out into new high territory. Trying to anticipate what the overall market trend is doing becomes much easier knowing what human nature does on a reoccurring basis. The indexes broke out of resistance levels last week. The current uptrend can be reasonably assumed to be remaining in progress as long as there are no candlestick reversal signals and a close back below the T line. Knowing that this is creating a greater probability that the uptrend remains in progress allows investors to move more aggressively on candlestick signals and patterns.
AMZN is a good example of a frypan bottom breakout, producing high probabilities of the uptrend in this stock continuing. Simple calculations, measuring wave one, makes the current wave three heading for the $1000 level as the most likely target. Being able to apply simple reoccurring trend analysis results allows investors to enter at the appropriate time as well as placing high profitability option trading strategies. Because candlestick analysis merely reveals what investors are likely to do with a high degree of probability provides the capability to not only be in the right trades at the right time, but also analyze which trades have the highest profit potentials.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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