January 17th Market Direction
The market indexes continue to show an indecisive nature as illustrated in the past two weeks of trading. The NASDAQ has been the strongest index over the past couple of weeks but today it did a small kicker type signal to the downside. It still has not close below the T-line. It will be important to see how the markets open tomorrow. A lower open would put all the indexes below the T-line, implying some more profit-taking as the market appears to be getting tired, waiting for political results after the inauguration. These market conditions make the benefits of identifying candlestick patterns much more beneficial. The classic pattern is producing good strong profits in our recommendation of MPET. The classic pattern is very easy to recognize, a frypan bottom pattern producing a very strong bullish move, followed by a J-hook pattern which requires a prerequisite of a very strong bullish move. Because candlestick patterns are created by investor sentiment that is less influenced by the overall market trend, they have the probabilities of producing profits even though the overall market conditions are not showing any great strength.
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The Candlestick Forum Team
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