March 5th Market Direction
What do the so-called experts tell us about tariffs? It doesn't matter! What the market tells us is the most important factor. Friday, the markets after selling off early, close near the top end of their trading range. The NASDAQ produced a piercing signal. The Dow and S&P 500, close near the high end of their trading range on Friday. A huge benefit of candlestick formations are built right into each formation. The candlestick investor gains valuable information by the mere development of a candlestick formation. When the candlestick formation forms a bullish/white candle, it immediately indicates buying from where it opened. Although a price/index may be trading lower on the day, it can be witnessed that buying is occurring based upon the formation of a white candle. This produces much quicker and accurate assessments of what a price movement is doing.
The T line is also a very important trend indicator. Although the general market indexes may be selling off, as seen during most of last week, numerous individual stocks continue to trade above the T line. This was evidence the Bulls were still participating. The lower prices were not indicating a rampant selling spree. The combination of the T line and candlestick formations demonstrate which stocks are still in an uptrend in spite of the market trading lower. Simple scanning techniques allow candlestick investors to maintain bullish positions even when the market is heading lower but also identifying which stocks are good short positions based upon the downward market direction.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
Website special reflects current newsletter. If you are reading an archived newsletter you will be directed to Current Website Special