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September 15 Market Wrap-Up

The NASDAQ is showing the most compelling reversal signal, today's positive trading bringing it back up through the T-line after supporting with candlestick buy signals on the 50 day moving average. The other indexes are showing positive trading but not yet above the T-line. This combination does not illustrate a full reversal signal to the upside yet, but it does illustrate that any selling pressures over the past few trading days were not very convincing. This puts the prognosis back in the range of no great buying pressure in the market and no great selling pressure in the market, making the evaluation of each individual stock/sector chart pattern the most important criteria.

The NASDAQ is showing the most compelling reversal signal, today's positive trading bringing it back up through the T-line after supporting with candlestick buy signals on the 50 day moving average. The other indexes are showing positive trading but not yet above the T-line. This combination does not illustrate a full reversal signal to the upside yet, but it does illustrate that any selling pressures over the past few trading days were not very convincing. This puts the prognosis back in the range of no great buying pressure in the market and no great selling pressure in the market, making the evaluation of each individual stock/sector chart pattern the most important criteria. When it can be evaluated that there is no dramatic selling occurring in the markets, the candlestick patterns become more profitable. Investor sentiment is not putting any pressure on bullish pattern sentiment that creates price patterns. This can be seen with many consistent profitable trades being produced coming out of a frypan bottom patterns. These patterns allow investors to take advantage of price movements that not only produce high probability positive trades, but also high profit trade set ups. Candlestick patterns are the result of what human nature produces time after time. They work just as effectively on a daily chart or weekly chart as they do on a five minute chart or hourly chart. Because a pattern should produce an expected result, knowing when to close out a trade based upon a pattern not working is easily assessed by visual analysis.

When it can be evaluated that there is no dramatic selling occurring in the markets, the candlestick patterns become more profitable. Investor sentiment is not putting any pressure on bullish pattern sentiment that creates price patterns. This can be seen with many consistent profitable trades being produced coming out of a frypan bottom patterns. These patterns allow investors to take advantage of price movements that not only produce high probability positive trades, but also high profit trade set ups. Candlestick patterns are the result of what human nature produces time after time. They work just as effectively on a daily chart or weekly chart as they do on a five minute chart or hourly chart. Because a pattern should produce an expected result, knowing when to close out a trade based upon a pattern not working is easily assessed by visual analysis.

 

 

 

 

Public Stock Chat session tonight at 7 PM central with Eric Wilkinson. Click here to register. 


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