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July 12th Marker Wrap-Up

Prices move based upon the perception of fundamentals. This is exactly what candlestick charts reveal, making it visually easy to analyze the direction of the markets/price movements. Today's positive trading, a bullish kicker signal in the Dow completely offset the bearish kicker signal in the Dow yesterday, indicating the current trend was still in progress. This can also be easily assessed based upon the fact that the indexes continue to trade above the T line, a very powerful trend indicator. Trading off the candlestick charts produce two major benefits. First, the analysis of the direction of a price move is easily analyzed based upon reoccurring candlestick reversal signals and patterns. Secondly, the timing of a price move can be made very exact. This allows for the optimal entry levels whether buying stock or options.

Candlestick charts work just as well on a one minute chart as well as a monthly chart. Entering a trade can be optimized by analyzing the overall daily/weekly trend of a trading entity and the entry/exit of a trade in that entity can be made much more concise using the combination of a one minute/five-minute/10 minute chart combination. For option traders and binary option trading, this becomes a very powerful trade set up. Having the ability to analyze the overall market trend, combined with scanning for the most bullish/bearish sectors, then analyzing which stocks have the most powerful reversal signal potential allows for placing all the stars in alignment. This dramatically improves the probabilities of being in the right positions at the right time. The current market trend indicates the potential of more upside, the Dow heading for the upper resistance level, indicating a couple more weeks of bullish market before a resistance level is reached. This allows for participating in the bullish candlestick chart patterns that are going to produce the highest profit potential.

 

 

Chat session tonight at 8 PM with Dan Cook guest of the NADEX, on binary options.  Click here to register.

Good Investing,

The Candlestick Forum Team

 


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