The morning comments stated the bullish trading needed to be present going into the close. It also directed that if prices came down through todays open, to close out long positions that were showing weakness. This may sound like talking out of both sides of the mouth. Fortunately, there is much more substance in today's recommendation. Positive trading on the open made the prospects of the tee line acting as support more viable. The mention of caution was inserted because of the previous signals that were demonstrated in the market indexes. The Dow had some toppy trading signals over the past few days, a Bearish Harami followed by a Dark Cloud signal that formed on Friday. The Dow closed just below the tee line on Friday. Stochastics showed overbought conditions. It becomes a very logical trend assessment that if the bullish forces could not maintain above todays open, the tee line would be breached and the stochastics would be pushing down further.

This is not a difficult analysis. It becomes much easier when visually analyzing what has occurred over the past few trading days. When you have the ability to evaluate the trends with much more clarity using candlestick signals, buying positions or taking profits become a much easier process. Candlestick investors also have the benefit of establishing long positions resulting from price patterns. The bullish patterns are created by a buildup of investor sentiment. Patterns usually are created with less regard to general market conditions. As witnessed in our recommendations today, SCSS and VPRT finished positive after being bought on today's strength. This is a function of the patterns having bullish sentiment developing over the recent time frame. This also demonstrates how a reversal in a market trend will have less effect on a price pattern.

VPRT

MELA

Candlestick analysis provides excellent if/then trading procedures. It takes the guesswork, as well as the emotional decision-making, out of investing. The more an investor can depend upon a reoccurring price situation, the less they have to worry about emotional decision-making. A major part of successful investing includes knowing how to control your own emotions. Despite the fact that candlestick analysis dramatically improves the probabilities of being incorrect trades, most investors still require the self learning process of controlling their own emotions.

Chat session next week, October 29, Adrienne Toghraie, the traders coach, will be presenting "The evolution of a master trader" during our Thursday night chat session. Do not miss this training, learn how to correct the mental flaws that keep people from making big money in the market. If you have the correct tools, you also have to have the correct mental perspectives.

Member Chat Session tonight at 8 p.m. ET.