June 25th Market Direction
The big profits in this market is on the short side. Being short using candlestick charts is a natural evolution of being positioned to the short side. Simple scanning techniques allowed candlestick investors to identify a change of investor sentiment in specific indexes/sectors. This was nothing more than analyzing when sell signals were occurring in the major indexes. The slow conversion of bullish positions over to bearish positions is based upon mere common sense analysis of what is occurring based upon the appearance of bearish signals. The results are making big profits when the markets start selling off hard because short positions/put positions have already been put in place well before the panic selling occurs.
When market indexes start getting 'toppy' candlestick charts will illustrate which bullish positions can be closed out, taking profits, based upon simple candlestick reversal signals or patterns illustrating Bears taking control. This does not necessarily mean those positions should be shorted, the simple scanning techniques provided by candlestick analysis allows investors to identify the higher probability short positions. Many analysts try to project where prices/trends will move to. Candlestick analysis tells you what the trends are actually doing. The information built into candlestick signals allows investors to see what is actually happening in investor sentiment with a high degree of probability.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
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