October 2nd Market Direction
Candlestick charts reveal what overall investor sentiment is when you would think investor sentiment would be the exact opposite. The great tragedy in Las Vegas, most people would anticipate a negative reaction in the markets. The bullish movement today in the markets, moving the indexes to all-time highs again, is based upon something more complex than a tragic situation. This implies that there are other major considerations are in investors perceptions.
The best friend signal last week in the NASDAQ indicated there was strong bullish sentiment. This is more evident when the best friend signal occurred right off the 50 day moving average support level. The Dow has performed a very obvious J-hook pattern, implying there was still much more upside.
Identifying the strongest, top ranked candlestick signals allows investors to have their funds allocated to the most powerful trade set ups. The best friend signal, a Doji followed by a gap up in price, not only indicates the direction of the new trend but also indicates that's going to be a very powerful new trend. Add each individual candlestick signal to a candlestick pattern breakout, investors gain a very profitable tool for being in positions at the appropriate time.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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