| Proponents of Candlestick Analysis never proclaim | | | | 10. This is Pattern Recognition 202. |
| that it is the be-all and end-all of technical analysis. | | | | Those Candlestick patterns confirmed conventional |
| That's a good thing, because rarely is a single solution | | | | and enhanced technical analysis Indicators' warnings |
| the answer to a larger problem. Further, it's a frank | | | | of many weeks, leading up to March 6, that pressure |
| recognition of the reality: Candlestick Analysis and all | | | | was building to a very high level in favor of the |
| of the other ingredients which make up the rest of | | | | proposition that the markets would soon hit a hard |
| the body of technical analysis are mutually reinforcing. | | | | bottom, and reverse. |
| No one Indicator takes away anything from any of | | | | What are some of those other Indicators which |
| the others. Indeed, it is the Big Picture which | | | | broadcast warning signals? One of them is the |
| emerges when combining all possible tools into one | | | | Stochastics. We use a triple Stochastics array which |
| overall Master Tool that is most to be desired. The | | | | combines ultra-sensitivity with a long-term outlook, in |
| best result can almost always be found when the | | | | overlay fashion. These had operated near the |
| information feed is working at full capacity. | | | | bottom of their ranges for weeks. The MACD, which |
| The Candlestick Analysis component of the total | | | | displays three moving averages on the screen, was |
| analysis picture focuses on two things: (1) the | | | | showing extreme readings. And finally, the Chandelle |
| identification of Trend Reversal patterns; (2) the | | | | Indicators were showing that a continued falloff in |
| identification of the underlying mind-set of traders as | | | | prices was probably not sustainable much longer. |
| a group. The Candlesticks have no peer in spotting | | | | It was the combination of all into one which made a |
| reversals of trend as they are happening or as they | | | | bullish prediction logical. It was the Candlestick analysis |
| are about to emerge. This was proven in spades, | | | | which provided the confirmation of a change in trend |
| once again, when Candlestick reversal patterns | | | | that we were looking for. It all came together on |
| across the Indexes board identified reversal patterns | | | | March 6, 2009. The value of using all available |
| in place on March 6, 2009, two trading days before | | | | Indicators, together, cannot be overstated. It is truly |
| the onset of the massive rally which began on March | | | | a case of "two plus two equals five. |