April 8th Market Direction
Although the Dow traded lower today, there was multiple visual evidence that the day was merely profit-taking versus any trend reversal. First, the Dow closed above where it opened, immediately indicating there was buying in the markets after the open. Additionally, the other indexes were all trading above where they opened and eventually closed higher on the day. But the most underlying visual evidence was the fact that all the indexes continue to trade above the T line. The T line is extremely important for indicating the probabilities of high profit trades as well as consistent trend analysis. Our two day training, on April 27 and 28th, on the T line will be a detailed analysis of how to identify the extremely profitable trade set ups.
Utilizing trend analysis for individual stocks also allows for a more accurate read on the overall market trend. AAPL and AMZN. The T line accentuates the candlestick patterns that are forming. Knowing the trends are still in progress on a selloff in the general market reveals that everything that most investors are watching are not selling off. Analyzing individual commodities, such as crude oil continuing it's uptrend, also allows for identifying which sectors will probably have continued strength. The combination of candlestick signals, which are the graphic depiction of investor sentiment, with the T line, which is a natural support and resistance level of human nature, provides a trading strategy that has a proven track record for centuries. There are numerous trading strategies utilizing many different methods of technical analysis. They can be dramatically improved merely by overlaying candlestick analysis on to those recommendations from those methods.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
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