January 2nd Market Direction
The markets produced huge profits in 2017. Did everybody make big profits? Definitely not. Why? Because of human nature.
Normal human reaction, some stocks are up in the portfolio while other stocks are down in the portfolio. Hopefully the losers will start coming back up. The problem is reality, the stocks that are going down are going down for a reason. Most investors continue to hold those stocks, waiting for them to return to positive. There was a very consistent feedback from investors learning candlestick analysis. They made much more money than previous years. Not only because the market was up strong, but they could visually recognize immediately which stocks were not producing positive results. Simple candlestick analysis logic dramatically improves an investors self-discipline to close out trades that are not working as expected and moving on to the chart patterns that illustrate investor sentiment is working as expected.
Today's positive trading negated the prospects of Friday's profit-taking continuing into 2018. Common sense logic utilizing the candlestick charts indicates that no major outside factors, such as profit-taking, has affected the investor sentiment that has moved the markets in a slow upward fashion for over the past 12 months. Candlestick patterns are based upon human nature continuing to do what investor investor decisions reoccur time after time. Frypan bottoms produce high probability expectations as well as high profit results. Having this information creates huge profitable advantages for candlestick investors.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
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