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March 8th Market Wrap-Up

How does an individual investor assess what the policies or the announcements made from the White House going to do to price movements? They can't! But they can analyze what everybody else's assessments are based upon those parameters by witnessing what the candlestick signals are showing as a result. Are tax cuts good? Are tariffs good? As an individual trying to project what new policies may do to the price movements of the markets is usually futile. But candlestick charts illustrate what everybody else's assessment is for the future. This becomes a valuable information to produce profitability for once portfolio.

Investor sentiment produces the same patterns time after time. That's because investor sentiment does not change. Patterns are recognized because they produce the same results with a high probability. As illustrated in our recommendation on ZSAN, the question was asked, " how did you know this would have such a big price move when you recommended it?" The true answer is: "we didn't know." However, the bobble breakout pattern, when the price came up through the 50 day moving average after failing the first time usually produces a high probability result. The next likely target was eventually the next resistance level, the 200 day moving average. Do all price patterns produce over 100% profit in three trading days? Obviously not! But the major benefit of candlestick analysis is that it puts you in positions where the probabilities will be that you're going to make a profit and also put you into situations where the potential to make a huge profit is greatly in the candlestick investor's favor. There is no formulas to learn, no underlying technical analysis needed, candlestick analysis is merely the graphic depiction of recognizing what happens in human nature time after time.


Chat session tonight at 8 PM ET, Bill Johnson returning by popular demand. Click here to register.

Good Investing,

The Candlestick Forum Team

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