February 9th Market Wrap-up
Is the markets trading at all-time highs because companies are doing better? No, company stocks are trading higher because investor sentiment proceeds that they will be doing better. What does candlestick charts reveal? Exactly what investor sentiment perceives will be happening. Not what might be happening, but what actual buy and sell decisions are being implemented. Today's positive trading is likely the results of hearing that tax reform is still in process. Candlestick analysis allows for the accurate assessment of what is occurring in any trading entity, the general market, specific sectors, specific stocks. The benefit of candlestick analysis is having the ability to see what the overall market direction is going to do on a high probability basis. This leads into being able to take advantage of candlestick chart patterns that are not only going to produce profitable trades but inordinately high profit trades based upon the reoccurring reactions of investor sentiment.
Candlestick patterns are recognized not only because they produce the likelihood of a profitable trade, but they are also indicating price moves that are going to be extremely stronger than merely uptrending prices. This was illustrated in our recommendation on CLF, breaking out of a frypan bottom pattern and an obvious resistance level. Because human nature works the same way time after time when it comes to investment funds, the candlestick investor has a huge advantage by being in high profit trades with a high degree of probabilities.
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The Candlestick Forum Team