December 29th Market Wrap-Up
What are going to be the strong sectors going into 2017? Because candlestick signals and patterns have expected results, the evaluation of which sectors will be the strongest can be easily extrapolated by knowing what should result after a pattern is being developed. This is easily recognized in the gold sector. When analyzing the gold futures chart, it can be seen that there has been bottoming action based upon candlestick reversal signals followed by bullish confirmation. When analyzing gold stock charts, the scoop pattern can be clearly identified in numerous charts. Knowing what should occur after a scoop pattern breakout allows investors to anticipate gold stocks having a strong movement going into 2017.
The expected results of patterns puts investors in high probability/high profit trades set ups. The most predominant candlestick patterns in recent market conditions have been the frypan bottom pattern and the J-hook pattern. Both patterns have expected results. The advantages of utilizing patterns provides both high probability price direction as well as high profit price movements. There are many talking heads giving their opinions on which sectors are going to act well going into the new year. The Japanese Rice traders profess to listen to one major analytical factor for evaluating what is going to occur in the future, the market itself. When keeping in mind that candlestick signals and patterns are the accumulative knowledge of everybody buying and selling during a specific time frame, that information has much more credibility than listening to each individual who has an opinion. As demonstrated in 2016, candlestick charts illustrated which stocks/sectors were having the biggest and strongest price moves. This will remain consistent going into 2017 and further.
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The Candlestick Forum Team
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