June 1st Market Wrap-Up
Candlestick charts not only reveal the direction of the market/price trend, but they also illustrate the potential power of a trend. Up until today's trading, the Dow and S&P 500 appeared like it was going into a flat stage like it had prior to the big selloff two weeks ago. Today's positive trading changed the prognosis from flat trading to a much stronger uptrend based upon a candlestick J-hook pattern. The strength of the potential new trend gains credibility due to the fact that the J-hook pattern, which has expected results going into wave three, with clearly indicate the current trading range would now be breached. Wave three of a J-hook pattern would imply the Dow could head to the 21,700 level. Having the ability to project what each price pattern is capable of reaching allows the candlestick investor to be much more concise as far as the percentage of long or short positions in the portfolio. Today's positive trading would imply the bias is still very much to the upside. This would instigate reducing short positioning and adding more to the long side.
Knowing that the market trends has not been reversed allows for taking advantage of strong price moves based upon strong candlestick signals. EXAS was re- recommended based upon the evidence of kicker signals. The kicker signal started the previous strong price move, wave three of a J-hook pattern was also started with a kicker signal. The signals allow for the appropriate an exact time to be entering and exiting trades based upon the most common and consistent trend indicator, human emotions. Candlestick signals consistently put a trader in the correct trade at the correct time.
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The Candlestick Forum Team
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