November 9th Market Wrap-Up
The graphics of candlestick charts allow for a much more accurate assessment of what is occurring in investor sentiment. Today's trading was lower but the candlestick charts provide much more valuable information than merely analyzing the markets were lower. The indexes traded back up toward the top of their trading range. The NASDAQ above where it opened. Although the NASDAQ was down 39 points on the day, the candlestick chart revealed that it was trading above where it opened on the close, indicating the Bulls were still participating in the market trend. The NASDAQ also closed above the T line. This allows the candlestick investor to make a much more accurate assessment of the market direction. The Doji type day in the indexes allow for the application of the Doji rule, the trend will usually move in the direction of how they open after a Doji. A positive open tomorrow in the NASDAQ would give more evidence that the NASDAQ was using the T line as a support level.
Additional evidence that there was not mass selling today was due to witnessing numerous charts that were still trading positive even when the overall market was selling off dramatically. Positive trading was using the result of a candlestick pattern continuing. The frypan bottom and the bobble breakout still allow for good bullish profits to be made even if the market is in an indecisive mode. The candlestick charts also allow for pinpointing which sectors/stocks are going to continue to trade higher as well as which stocks/sectors are going to trade lower. The immense amount of information built into each candlestick formation allows investors to move quickly and accurately with a high degree of probability coming from the results of a signal or pattern.
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The Candlestick Forum Team
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