June 18th Market Direction
The Dow is down over 100 points today, a strong selling day? Not if you analyze the candlestick formation. The Dow actually closed near the high end of its trading range, well above where the market opened, indicating buying was still occurring after a lower open. Because the graphics of candlestick analysis clearly illustrate the strength of the Bulls and the Bears, investors get a much more accurate reading of what is occurring in market/price trends. The Dow is down but it still illustrated the Bulls were around. The NASDAQ opened lower, right on the T-line and then started trading positive from there. Witnessing the graphics keep investors from getting whipsaw out of bullish positions that are still working in the right direction.
TSLA is a good example of how the graphics from candlestick patterns show investors when it is the appropriate time to be buying or selling a position. The frypan bottom breakout was demonstrated with a trend kicker signal, a very powerful bullish candlestick signal. The utilization of the T-line as well as the 3T-line provided much more clarity for investors to maintain their position. Today's trading took TSLA up through a viable resistance level, indicating more upside. Because candlestick signals are the graphic depiction of human nature, investors not only can identify when a price move is about to start, but it also helps maintain profitable positions until the appropriate sell signal appears.
The Candlestick Forum Team
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