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September 20th Market Wrap-Up

Simple visual analysis of the indexes in conjunction with each other provides the candlestick investor with a very high probability trend analysis assessment. Yesterday, the Dow is trading positive confirming the support at the T line and producing an uptrending frypan bottom pattern. The S&P 500 and NASDAQ were not as bullish. However, they formed Doji's. This made today's market trend assessment very easy. Witnessing the premarket futures showing the Bulls were coming in with strength was confirmation that the NASDAQ and the S&P 500 were forming bullish Doji sandwiches, high probability indication of the uptrends continuing. The Dow showed enough strength to gap up through the uptrending channel resistance level, making the next target the all-time high. The NASDAQ and S&P 500, after forming the bullish Doji sandwich today, makes the top of the uptrending channel the likely target. Having the ability to analyze the patterns created by human nature time after time allows a candlestick investor to make accurate assessments of the market trend and be able to see the reasonable targets of the trends.

The frypan bottom pattern is a very high probability trades set up. It is created by the build up of investor sentiment over a longer period of time. This has two benefits! It allows the candlestick investor to anticipate when the big price moves is going to occur and if there is a severe market change, a pattern like a frypan bottom would take longer to reverse course. This gives the investor time to close out the position without a severe trend reversal. Because human nature works the same way time after time, utilizing candlestick signals and patterns produces trade set ups that allow for high profit results with high probabilities.




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Good Investing,

The Candlestick Forum Team

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