October 22nd Market Direction
An indicator that makes analyzing a trend much easier is the T line. This indicator working in conjunction with candlestick signals and patterns allows an investor to analyze the overall trend of the market or individual trading entities with an extremely high degree of accuracy. As illustrated in the Dow chart, the T line can be seen as an obvious resistance level. What makes this more relevant is the fact that nobody has the T line on their charts. This makes the T line a natural support and resistance level, not a magnet or target that everybody is watching. Analyzing candlestick signals, which is the graphic depiction of investor sentiment, in conjunction with the T line which is acting as a natural support and resistance level of human nature, that combination becomes a very powerful trend indicator tool.
Which direction as the market moving? A very simple rule utilizing the T line makes that analysis very easy to identify. As long as a price remains above the T line after a candlestick buy signal, it can be assumed the uptrend remains in progress with a high degree of probability. Prices trading below the T line after a candlestick sell signal can make the assumption the downtrend is in progress with an extremely high degree of probability. This is based upon a very simple factor, human nature works the same way time after time. Will there be up days in a downtrend? Will there be down days in an uptrend? Obviously yes, but as long as the final criteria remains intact, that there is not a candlestick reversal signal and a close above or below the T line, the current trend remains in progress.
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The Candlestick Forum Team
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