October 16 Market Direction
Although the indexes have been demonstrating some weakness during it's uptrend, such as opening higher and closing below where it opened, but still trading higher on the day gives graphic illustration that there is some selling coming in the markets at these levels. However, candlestick analysis alerts investors when weakness is entering a trend but still requires bearish confirmation. As long as the indexes do not show a confirmed candlestick sell signal and a close below the T line, simple analysis can conclude that the overall trend is still in an upward direction. This information is important when analyzing individual stock charts. Simple deduction demonstrates that as long as there is no major change in the overall market direction, the strong candlestick breakout patterns are much more likely to produce big gains.
The graphics of candlestick charts reveal where there is a major change of investor sentiment. Breakouts produce much better profitability when analyzing what type of candlestick signal created the breakout. There are numerous stocks producing big gains because of obvious patterns that have produced breakouts, creating new investor sentiment that can be exploited for huge profits. This is producing excessive profits in stock trades and the ultimate timing for entering 100%, 200% 300% plus in option trades.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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