May 21st Market Direction
Friday right on the T line. The T line is one of the most accurate trend indicators that allows candlestick investors to confirm investor sentiment. It acts like a natural support and resistance level of human nature. Candlestick signals are the graphic depiction of human nature. When you apply the T line to a candlestick chart, confirming the natural support or resistance level of human nature, you have an extremely powerful/accurate trend analysis combination. Today's gap up off the T line in the Dow and S&P 500 provided relevant information. The best friend signal, a Doji followed by a gap up, is one of the strongest bullish signals. When it was produced off the T line, it basically confirmed that investor sentiment was not going to trade in a downtrend, trading below the T line. This information allowed for immediate entry of bullish trades confirming, getting into positions well before other investors.
Candlestick signals and patterns produce high probability results. Our recommendation on NVTA was based upon simple visual analysis. The belt hold signal of last week indicated a lot of sellers were sopped up by Bulls. Additionally, it closed above the T line. Bullish confirmation from the belt hold signal visually confirmed a J-hook pattern in progress. Identifying candlestick patterns, utilizing individual candlestick signals, improve the probabilities of not only being in the right direction at the right time but also in price moves that are going to be much stronger than normal price moves during a market uptrend. This analytical process allows the candlestick investor to have a high percentage of portfolio positions moving in a profitable direction. This is all based upon one simple factor. Candlestick signals are the graphic depiction of human nature and human nature has not changed over the past 400 years, and will probably not change over the next 400 years.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
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