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September 5th Market Directions

Candlestick chart graphics allow an investor to analyze chart patterns much more quickly. This was illustrated in today's trading. A lower open, after the shooting star/Doji of Friday provided numerous pieces of information. First, as seen in the Dow, a lower open after Friday's Doji/shooting star immediately indicated a breakout through the upper resistance level was not going to occur. Secondly a gap down after a Doji creates a high probability the trading is going to go lower. This analysis would have indicated immediately that the sideways/wedge formation of the Dow was the strongest analytical prognosis. This allows the candlestick investor to make immediate trade decisions. Bullish charts that appeared to be getting toppy from last week's trading should of been closed out immediately on lower opens today. The lower close of the indexes now made the general market assessment as a flat or indecisive trading range. This immediately alters the astute traders trading strategy. Without any direction being able to be visually analyzed based upon the nature of the candlestick signals at resistance levels changes the overall strategy from being predominantly bullish to having both long and short positions in the portfolio.

A major benefit provided by candlestick analysis is it shows when to be out of trades immediately. What appear to be bullish chart patterns last week were seen to be indecisive in Friday's trading. This made for logical and immediate trading decisions based upon how the markets opened in today's trading. Having the perspective of what investor sentiment is likely to do based upon the confirmation of candlestick signals allows investors to move very quickly in getting out of trades that have a high probability of backing off. Successful investing not only includes identifying which trades are going to be the most profitable but also having the ability to close out trades that are not working immediately. Candlestick signals provide a huge advantage for indicating when to get into strong trades and when to get out of trades that are not working.

September 5th to November 1st: FREE Weekly Workshop Training Series with Steve Bigalow


"Major Candlestick Signals 9-week Training"

 

This week's topic: Doji Signals

Over 9 weeks Steve's going to show us:

  • Picking the best price entry
  • Picking the prime stocks ready to make BIG moves
  • Know if you're looking at price-reversal or normal profit-taking
  • How to scan for Major Signals that produce predictable results
  • SEE the warning signals of TREND REVERSALS 
  • And so much more! 
Registration Required - Click Here to Register

 

Good Investing,

The Candlestick Forum Team

 


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