May 11th Market Wrap-Up
Candlestick charts provide a much more comprehensive evaluation of market/price movements. The indexes traded lower today, the most investors that would show weakness. To the candlestick investor there is a completely different scenario. The indexes created a hammer type signals, closing at the top end of their trading range. More importantly, the NASDAQ and the S&P 500 closed above the T line after trading much lower throughout the day. The visual aspects of candlestick charts allow investors to see what the actual results of investor sentiment was during the day.
Having the ability to analyze the overall market trend with much more accuracy based upon the information built into candlestick signals and patterns allows investors to have positions established in the portfolio that would take advantage of the overall market trend. The lack of significant selling, but also the lack of significant buying, produces investment conditions that allow for being positioned in chart patterns that are going to perform with excessive profits.
When markets are is moving sideways, the candlestick signals and patterns for each individual stock chart becomes the primary evaluation factor. LPSN was a good example of today of a frypan bottom pattern producing excessive profits. JWN formed a bearish kicker signal today, anticipating the results of their after hours earnings report. Utilizing powerful confirming indicators produces ultimate entry and exit strategies. Candlestick signals and patterns analyzed in conjunction with the T line creates huge profit potential trades based upon the timing being exact. Our two day training next weekend on the T line, the most simple but highly effective trend indicator, will go into great detail on how to use this indicator to consistently produce big profits.
Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.
The Candlestick Forum Team
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