September 12 Market Direction
Indecision in the markets can be viewed on a daily basis, such as seen in the past few months with numerous indecisive candle days, Doji's, spinning tops, small hammer signals. Indecision can also be experienced from a day to day basis as seen in the past two trading days. However, the trend of the market can be more accurately analyzed based upon today's signal, a big piercing signal. Knowing what should happen after a piercing signal allows investors to move quickly based upon confirmation or lack of confirmation of the signal. The premarket futures tomorrow will make evaluating the direction of the market relatively easy.
The same is true when analyzing a pattern. As illustrated in the CVRR chart coming out of a frypan bottom at the end of Friday's trading provided very valuable information. The pattern was continuing to work in spite of the markets selling off 400 points. Knowing what should occur coming out of a pattern allows investors to take advantage of trade set ups with high probability results. The frypan bottom and the J-hook pattern is working very profitably during these market conditions.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
Website special reflects current newsletter. If you are reading an archived newsletter you will be directed to Current Website Special