July 2nd Market Direction
Analyzing the market trend becomes much more clear when utilizing candlestick signals. The NASDAQ opened lower, right on the 50 day moving average. That may have been scary to most investors, but the candlestick investor could graphically see that buyers were coming into the market immediately after the open. The visual evidence of bullish participation could also be seen in the Dow and the S&P 500, hovering/supporting on trend line support levels most of the day but then started showing bullish sentiment going into the end of the day. Having the ability to graphically identify buying immediately allows for much more accurate and immediate decisions. Such as witnessing short positions in the oversold area starting to produce buy signals. This allows for better profit-taking levels.
Candlestick investors can be less concerned about the overall direction of the market when utilizing the information built into individual chart patterns. The frypan bottom produces high probabilities of profitable trends in spite of the overall market drifting sideways or lower. Identifying individual patterns is easy. And understanding how those patterns are produced allows investors to have investment funds positions in trade set ups that not only produce high probability results but also high profit results. The frypan bottom is the accumulative increase of investment sentiment even when the buyers producing the pattern know that the market is heading in the opposite direction. Knowing what the results are from specific candlestick patterns allows investors to be able to create profits without as much concern for the overall market direction.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
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