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February 11th Market Direction

The ability to better analyze the overall market trend is based upon simple visual analysis. Today the Dow traded lower, continuing to show some consolidation. The NASDAQ and S&P 500 traded slightly higher but in an indecisive formation. The strong indicator, the transportation index, revealed the lack of any major selling sentiment in the market. The analysis of all four indexes can be done in less than 15 seconds. The assumption can be made quickly that there is not any selling consensus nor any bullish consensus. That information allows an investor to assume there is no major change of investor sentiment, the market trends will move in its major overall direction. That produces the opportunities to identify the potentially strong profit candlestick patterns and signals.

FET was recommended based upon a very simple 2 + 2 concept. This is identifying a strong signal, such as the kicker signal indicating a strong reversal. Add that strong signal identification at a very logical breakout area, a frypan bottom breaking out through the 50 day moving average. Adding the accumulative analysis together a much stronger probability of not only having a price move move in the right direction, but also with a very strong price move. This analysis is merely the application of what candlestick analysis has identified as high probability price movements based upon human nature at levels that other investors are also utilizing to make their bullish or bearish trade decisions. Knowing what should be expected as a result of a candlestick signal or pattern creates a trading strategy that puts investors in the right positions at the right time.

 

 

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

Good Investing,

The Candlestick Forum Team


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