Candlestick Trading Forum
keyword search

Candlestick Trading Forum
       

February 21st Market Wrap-Up

There is a simple technique to analyze whether the markets have had a reversal or merely profit-taking. Today the indexes traded lower. However, the transportation index continue to trade higher. This reveals there was no consensus in the selling today, merely profit-taking in specific areas. Also, the nature of the signals reveal the magnitude or conviction of the selling. Although the Dow was down 100 points, still closed above the T-line. Both the Dow and the NASDAQ, trading lower, did so with indecisive candlestick formations, providing visual information that the strength of the selling was indecisive. A true reversal in the overall market trend would require a candlestick sell signal and a close below the T-line. With this knowledge, an investor keep from getting whipsawed out of positions too early.

Candlestick signals pinpoint where the strength or weakness may be coming into a price. DLPH demonstrated a strong upside potential with a trend kicker signal. The strength of the signal also confirms a J-hook pattern, producing strong probabilities of more upside. DPZ had a dramatic drop in price based upon earnings today. Fortunately, with candlestick analysis, this would not have been a surprise. The sell signals in the close below the T-line work clearly evident over the past couple of weeks of trading. Candlestick signals are the graphic illustration of whether the Bulls or the Bears are in control of a price move.

 

Chat session tonight at 8 PM ET. Click here to register.

Good Investing,

The Candlestick Forum Team

 


Website Special

Website special reflects current newsletter. If you are reading an archived newsletter you will be directed to Current Website Special

 

 

Candlestick Trading Forum