June 5th Market Direction
When the market trend can easily be evaluated that there are no potential reversal signals that the uptrend still process, it allows the candlestick investor to take advantage of price patterns that worked very effectively. They work more effectively because there is no dramatic change of investor sentiment in the overall market. Currently the Dow and the S&P 500 are illustrating a J-hook pattern. This pattern produces high probabilities that there will be more upside. The candlestick investor gains a tremendous amount of clarity of what investor sentiment is doing based upon each individual candlestick formation as well as the overall price patterns. Expect the uptrend to continue. It becomes much more clear to identify what a trend is doing utilizing the candlestick signals and patterns, as well as the T line as a support/resistance level.
Individual stock charts, breaking out of candlestick patterns, have a much higher probability of producing extra-large gains if the overall market itself is not showing any change of a current trend. Prices move in waves! This can be seen in our recent recommendation on CONN as it started wave three with strong bullish reversal signals. Candlestick signals and patterns put investors in situations where the probabilities are extremely good that they are in a price trend at the appropriate time as well as participating in a very strong price trend.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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