December 19th Market Direction
The graphics of candlestick charts make it much more clearly definable that there is no selling pressure in the markets. It also illustrates the existing uptrend is in a sideways mode, a resting period. The graphic illustration of investor sentiment shows the lack of any change of investor sentiment. Add to the analysis that the indexes are still trading above the T-line allows the candlestick investor to assess the uptrend remains in progress. The advantage of knowing that the market is not selling off, even though it may not currently be moving up, allows the candlestick investor to continue to take advantage of the individual stock charts that are moving in a positive direction because there has not been a change of investor sentiment overall.
The candlestick chart patterns allows investors to get themselves placed in high probability high profit trades. The recommendation to buy the stock and the calls in NVDA was based upon a breakout of a resistance level following a strong candlestick buy signal. That same analysis was applied to the recommendation of AMD, after the breakout of a resistance level based upon a best friend signal and the confirmation of a scoop pattern. The more pieces of evidence that can be visually analyzed, based upon the reoccurring price movements created by human nature, allows investors to not only be in high probability trade set ups, but also in high profit trade set ups.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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