December 7th Market Wrap-Up
Today's bullish trading in the markets provided evidence the T line was still a major trend factor. The Dow and S&P 500 formed by signals off the T line and the NASDAQ, after forming a bullish left/right combo signal yesterday confirmed by closing above the T line today. The combination of buy signals and closing above the T line produces strong probabilities that the current consolidation/profit-taking is over. As long as the indexes continue to remain above the T line, the probabilities are strong uptrend in the markets will start to continue again. The lack of aggressive selling is still producing very strong profits coming out of candlestick patterns, such as frypan bottoms. Utilizing the information built into candlestick patterns protects investments from backing off with any great severity even when the market in general is backing off with strength.
A major advantage of candlestick graphics allows investors to identify when there has been a breakout of a price pattern or of a congestion area. The visual characteristics produced by candlestick formations identifies which stock positions have now a new dynamic. The probabilities dramatically improve for being in profitable trades based upon witnessing profitable candlestick signals that have produced high probability/high profit trades over the past few hundred years.
Chat session tonight at 8 PM ET with Guest Speaker Mark Sebastian. Click here to register.
The Candlestick Forum Team
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