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August 27th Market Direction

The ability to make big profits in the market is a function of establishing positions that coincide with the market trend. Candlestick analysis makes it much more clear as to what the general direction the market is going to be. There were some very simple analytical factors that illustrated the Bulls are in control. Friday, the NASDAQ did a Doji sandwich up through the resistance level. A Doji sandwich implies more upside, making it more evident that a new breakout trend was in progress. Friday Saul the Dow and the S&P 500 show bullish support off the T line, adding more evidence the uptrend was remaining in progress. Today's positive trading took both of those indexes above the resistance levels, also implying more upside. Having the ability to analyze what the overall market conditions are going to do allows the candlestick investor to establish positions in chart patterns that are going to produce the biggest profits during an uptrend.

Because candlestick signals and patterns are created by the reoccurring investment perspectives of humans, the candlestick investor can anticipate where the big price moves will occur based upon previous candlestick formations. Adding that analysis to knowing which direction the market is likely to move with a high degree of probability permits the candlestick investor to have their investment funds allocated to the biggest probability/highest profit trade set ups. The most important factor is the ability to be in profitable trades a high percentage of the time. This allows for the compounding effect of a portfolio to produce big consistent gains.

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


Good Investing,


The Candlestick Forum Team

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