November 7th Market Direction
Profitable candlestick trading allows an investor to see what investor sentiment is actually feeling about specific information. The pullback of an FBI investigation on Hillary Clinton brought out very strong bullish sentiment in today's trading. Does that mean today's bullish signals warrant a strong uptrend? Obviously there is some very strong outside influences, the election, the is going to affect the trend of the market. Do you know who's going to win the election? That information is not known yet. There are times when market conditions warrant sitting back and waiting for the influences to play themselves out. The benefit built into candlestick analysis is it illustrates with an extremely high degree of accuracy what is occurring in a price/trend based upon investor sentiment. If an outside expected event still does not have a confirmed result, trying to anticipate the result is speculating. Identifying what investor sentiment is showing after an event, based upon candlestick formations, allows an investor to take advantage of profitable trade set ups with a calculated evaluation. When market conditions do not have a foreseeable result, be patient, the profitability will come from knowing what the results are producing.
With the strong move today in the markets, there were already chart patterns setting up that would be confirmed based upon bullish trading today. Those results are not the result of speculating that a big bullish move today was going to move those stock prices up. The bullish trading today confirmed but the candlestick signals were already illustrating. The Bulls had taken control and would produce high probability profitable results based upon bullish confirmation. This is very easily recognized based upon potential pattern breakout's. Today's recommendation on GIMO was based upon bullish confirmation of a J-hook pattern. Today's profitability in the GIMO trade was not based upon the big price move in the markets, it was based upon the normal expectation of a pattern breakout.
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