December 22nd Market Wrap-Up
Because candlestick patterns produce high probability results, they usually puts you in situations where you're not only going to be in a positive trade, but a good high profit trade. That is what created the recognition of the price pattern in the first place. This is illustrated again in our recommendation on MPET, up 10% today,HIIQ up 10% today. Once you realize that candlestick patterns have results based upon the reoccurring perspectives of investor sentiment, your profitability will improve dramatically. There are additional benefits of recognizing candlestick patterns. Because the patterns are developed from an accumulation of investor sentiment, usually based upon criteria that is directly related to that stock/trading entity, outside influences such as a severe change of market direction usually take longer to take affect. This allows candlestick investors to close out positions with a little bit more time, before a pattern becomes affected by the overall market reversal.
Because patterns usually produced expected results, they allow for much greater profitability when a market direction is moving one way or the other. All boats will rise in a rising tide. However, candlestick patterns identify which price moves are going to be much more extensive during a bullish market trend or a bearish market trend.
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The Candlestick Forum Team
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