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May 18th Market Wrap-Up

Candlestick signals and the T-line provide a much more clear assessment of an individual stocks relative strength. As illustrated in yesterday's hard selloff, most everything pulled back. But the indication of which stocks were actually sold off with more than merely the selloff of the market was based upon where it closed in relation to the T-line. An obvious probability factor, a significant close below the T-line provides greater probabilities of true weakness in the price trend. On the other hand, selling an individual stock chart that did not close below the T line produces much greater prospects for continuing it's uptrend. This is a visual evaluation tool for identifying which stock price moves will rebound the fastest and with more power. If it is understood that candlestick signals are the graphic depiction of human nature, and the T line is a natural support and resistance level of human nature, common sense indicates that stocks that were selling yesterday, but not closing below the T-line where showing decisively more strength. This little analytical tidbit used in conjunction with candlestick signals provides a much more clear guide as to which stocks should be closed out/profit-taking or which stocks should continue to be held.

Candlestick signals and the T-line provide a much more clear assessment of an individual stocks relative strength. As illustrated in yesterday's hard selloff, most everything pulled back. But the indication of which stocks were actually sold off with more than merely the selloff of the market was based upon where it closed in relation to the T-line. An obvious probability factor, a significant close below the T line provides greater probabilities of true weakness in the price trend. On the other hand, selling an individual stock chart that did not close below the T line produces much greater prospects for continuing it's uptrend. This is a visual evaluation tool for identifying which stock price moves will rebound the fastest and with more power. If it is understood that candlestick signals are the graphic depiction of human nature, and the T-line is a natural support and resistance level of human nature, common sense indicates that stocks that were selling yesterday, but not closing below the T line where showing decisively more strength. This little analytical tidbit used in conjunction with candlestick signals provides a much more clear guide as to which stocks should be closed out/profit-taking or which stocks should continue to be held.

Another great benefit of candlestick patterns is that they are created upon information built into the chart pattern with not as much regard to what is occurring in the overall market. This allowed candlestick investors to hold positions that were not showing weakness below a very high probability trend indicator, the T line. Numerous candlestick chart patterns held up above the T-line in yesterday's trading and rebounded with more strength than those closing below the T-line in today's trading. These type of visual confirmations allow investors to dramatically improve their returns by knowing which stocks to close in which stocks to hold.

Chat session tonight at 8 PM ET with Guest Speaker Brad Powell, click here to register.

 

Good Investing,

The Candlestick Forum Team

 


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