July 9th Market Direction
What do you think that tariffs will do to our economy/stock market? It doesn't matter! What you might think or what you hear the so-called professional analysts project does not mean a hill of beans. The market will tell you what the market is doing. This is one of the basic analytics the Japanese Rice traders provide with the graphics of candlestick charts. What is the correct analysis of what tariffs might do to the market? The market itself! The major benefit of candlestick analysis is knowing what is likely to happen when witnessing a candlestick reversal signal or a candlestick pattern. The Dow, as well as the other indexes demonstrated a basing stage based upon being able to analyze what was occurring in the candlestick formations at major support levels. Having the ability to project what should occur next allows the candlestick investor to have positions established before the major price movement occurs. This is based upon one simple factor. Candlestick signals and patterns are formed by the consistent reoccurring reactions of investor sentiment. This is been true for the past 400 years, and it will remain true for the next 400 years.
Establishing long positions over the past week or two with a simple process of analyzing what the market trend was about to do. Very simple logic implies that when candlestick bullish signals start to occur in oversold conditions in the market indexes, individual stocks with high probability pattern set ups are probably going to work more effectively. The development of candlestick patterns are the accumulative knowledge of everybody buying and selling. This allows for identifying which individual stock movements are going to produce the highest probability/highest profit trades. The scoop pattern has very simple elements that allow for recognizing when a big price move is about to occur. The recommendations for VSH and KEM were based upon analyzing a scoop pattern candle had developed and now the scoop itself was creating a strong price move to the upside. Knowing the simple techniques of individual candlestick patterns allows investors to be in high profit trades consistently.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
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