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January 22nd Market Direction

Nine out of 10 trades trading in the correct direction! Is that unusual? For most investors, yes. Even when the market is moving in an obvious direction, most investors are happy to have more than half of their portfolio trading positive while waiting for the other half to turn around and start going positive. That is why most investors have mediocre returns. What keeps most investors from closing out losing trades? Fear! The fear that if they close out a trade, that it will immediately started trading positive without them. With the additional fear that the new trade they put on will also go down. This produces inactivity in many investors trading program. Candlestick analysis implements simple trading techniques that allow for much higher percentages moving profitably. This fact alone eliminates the fear factor. This is merely applying simple common sense logic portrayed on candlestick charts. utilizing candlestick signals and patterns provide extremely high probability profitable trades. Moving from a bad trade does not have the fear of moving to another bad trade. The probabilities, based upon candlestick signals and simple confirming indicators constantly put investors in high probability profitable situations.

Today's positive trading continues to demonstrate the lack of any change of investor sentiment. How high can the market go? Who knows but it is prudent to stay long, with a few short positions in the portfolio, until there is a definite reversal signal. There is still not a consensus that the markets are going to head higher. The more "talking heads" that profess there is going to be a pullback, the higher the probability the uptrend will continue. As long as there is not a severe reversal signal in the markets, candlestick patterns are going to produce extremely high profit situations.


We will conduct a "Members Only" chat session tonight at 8:00 pm EST.

Good Investing,

The Candlestick Forum Team


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