Any trader worth his or her salt knows that, when relying on a forecast provided by Japanese candlesticks, it is always best to wait for confirmation. By watching what happens right after a signal pops up, you can verify the reliability of the pattern. Thus, if you can afford to hold your horses for another trading period, you can increase your confidence and peace of mind before making your trade. Some signals, like the Three Outside Down candlestick pattern, are built upon the concept of confirmation. After all, when it comes down to it, the Three Outside Down is just a confirmed Bearish Engulfing signal.
Continue Reading
Rick’s Featured Trade Ideas
Today’s featured trade idea and my personal trade plan
BG | PBO buy box 62.25 and 65.67 |J-Hook continuation | Morning Star
Good Morning, Profit Traders,
The T-Line™ is a powerful timing indicator
The DIA’s are desperately searching for footing so they can call it support, closing below the T-Line™ yesterday and creating another lower low. The morning futures at the moment suggest an open below the T-Line™. The QQQ’s are strong while IWM and the SPY are a bit flat. SMH is a huge leader while IYT struggles. There are only three directions the market can go: up, down or sideways. When the market moves sideways, swing traders become frustrated and impatient and can lead to mistakes like forcing a trade because you feel like you have to put a trade on. Don’t worry; the market will find a direction.
All the best to your trading success!
Rick | Hit and Run Candlestick Team
Trading knowledge ignites successful stock trading.
Continue Reading
Rick’s Featured Trade Ideas
Today’s featured trade idea and my personal trade plan
EXK | J-Hook |T-Line™ POP |
Good Morning, Profit Traders,
The T-Line™ is a powerful timing indicator
Janet Yellin had nothing to say that moved the market one way or the other, to speak of. Facebook earnings were positive, and the overall market basically floats along sideways. IWM showed healthy signs of bullishness closing the last two days above the breakout line while the DIA continues to nurse a bum leg.
Six days ago, DIA presented us with a evening star and that evening star has kept the Bulls working overtime keeping price held above water. The 1-hour chart of the Dow Jones industrial average ETF is showing signs of weakening and a small crack in the chart. Of course, it’s just the 1-hour chart and it simply offers a clue.
For now, the overall stock market remains bullish, and the Bulls continue to dominate.
All the best to your trading success!
Rick | Hit and Run Candlestick Team
Trading knowledge ignites successful stock trading.
Continue Reading
Some candlestick patterns bear poetic or engaging titles – Evening Star, Dark Cloud Cover, Spinning Top, Falling Window, Morning Star – while others are decidedly less appealing. For example, consider the title of the Three Outside Up candlestick pattern. Though not ugly, the title feels disjointed and awkward, and it doesn’t convey a lovely image or idea. Yet despite its middling name, this bullish reversal pattern can help you forecast a change on the horizon. To learn more about the Three Outside Up candlestick pattern, please scroll down.
Continue Reading
Rick’s Featured Trade Ideas
Today’s featured trade idea and my personal trade plan
CHK | PBO Flag |Breakout | Piercing candle
Good Morning, Profit Traders,
The T-Line™ is a powerful timing indicator
For nine days now, the SPY (market) has been In a consolidations box just waiting to break one way or the other. The $64,000 question is what direction is it going to break? Maybe the SPY (market) is waiting on FOMC meeting results. If so, we should know something today. Maybe the SPY (market) is waiting for earning reports before making a directional move.
Over the years I have learned to not fight the trend and price action despite what other indicators may be suggesting. As of the close yesterday, the trend remains bullish.
All the best to your trading success!
Rick | Hit and Run Candlestick Team
Trading knowledge ignites successful stock trading.
Continue Reading
Rick’s Featured Trade Ideas
Today’s featured trade idea and my personal trade plan
FRAN | RBB |T-Line™ Consolidation | Hammer
Good Morning, Profit Traders,
Watch the T-Line™ The T-Line™ is a powerful timing indicator
This week is loaded with news and information that could give the market a boost to the upside or shove it off the ledge, so trade wisely and remember why we’re trading. Although the major indices are still closing above the T-Line™, I am starting to see a possible crack appear. The crack may be nothing more than good old-fashioned profit taking followed by the resumption of the bullish trend.
The DIA has painted a chart that looks extremely suspicious, an evening star last week that appears to be holding water. A week ago, the SPY printed a bearish engulf that continues to have a say in what price is doing for the past few days. There are few indicators that I peek at some evenings and every weekend, and last night I took a peek at the following indicators for the overall market: T2122, MACD, TSV, OBV, price action and what’s oil up to. My conclusion is simple. Unless there is positive news that comes from the FOMC meeting and/or really good earnings reports, I believe that we are positioned for a profit-taking pull back.
All the best to your trading success!
Rick | Hit and Run Candlestick Team
Trading knowledge ignites successful stock trading.
Continue Reading
