January 8th Market Direction
These market conditions amplify the powerful aspects of candlestick analysis. The uptrend remains in progress as far as the overall indexes. However, as illustrated in today's trading, the Dow trading lower while the other indexes are trading higher, clearly indicates that there are some sectors/stocks trading positive while others may be trading lower. Simple scanning techniques allow for the identification of which stocks are trading with strong candlestick patterns. Most investors overcomplicate their trading programs. Candlestick analysis is very simple. The Japanese Rice traders have identified graphically what human nature does time after time. Easy to identify and understand signals represent what is occurring in human nature once again. Signals and patterns provide additional profitable attributes. Not only do they illustrate the direction of a price move but also produce the opportunity to be in price moves that are going to result in exorbitant profits.
High probability price moves can be seen in the big stocks, AMZN, NVDA, NFLX, TSLA, etc. Identifying when a pattern breakout will likely occur provides the opportunity to be in a high profit move but also allows for the exact timing to enter a profitable trade. Huge profits were made in 2017. Obviously everybody should have made money in 2017, but making big profits was the result of being in the right places at the right time as well as knowing when to get out of trades that were not working well and moving funds back into positions that were likely to produce big profits. The candlestick investor has a major advantage. Every time they enter a trade based upon a candlestick signal or pattern, they know the probabilities are greatly in their favor that they will be in a profitable trade.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
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