 Thank you, Falstow. Welcome, everybody. You know, one of the first questions is has there been people out there that haven't seen some of my presentations? Obviously, and for no. I'm doing day trading because we're in the process. We're gonna have a weekend day trading session on how you benefit from what the candlestick signals are telling us. And it's also based upon very good entry strategies. Not so much just for day trading, which is a huge advantage, but if you're swing trading or even long-term investing. Usually when we do big training sessions, they put me first because candlesticks are like the bread and butter, the ABCs of really analyzing charts. So I started out in candlesticks 40, I hate to think how many years ago, but I always tell people back then, I was learning all the candlestick signals I could because I was greedy enough, but I wanted to know everything everything that was going on with candlesticks. And unfortunately back then there was nobody else using candlesticks. So I always tell people, I didn't have anybody to go to and get a second opinion to see if I was doing things right. The only time I was getting a second opinion was when I'd go to the doctor, I'd say, what's wrong with me? And he goes, you're fat. I said, I think I want a second opinion. He goes, all right, you're ugly too. So what we're gonna do is day trading and there's 12 major signals. There's 50 or 60 candlestick signals in the candlestick universe, but we've narrowed it down to 12 over the years. Those are the 12 that you're gonna see all the time and they're gonna produce the high profit trades most of the time. I say probably 99.9% of the time. So I tell people, don't waste your mental time and energy trying to learn all of them. Just learn the 12 major signals. And then I've written three books on candlestick analysis. Easy thing to do is just go back through and browse through the other ones occasionally just so you recognize when you see a signal come up. So the most important statement of candlestick analysis is that the signals are the accumulative knowledge of everybody buying and selling during a specific timeframe. That timeframe could be a one minute, five minute, 10 minute combination if you're day trading or a daily, weekly or monthly if you're longer term investor. I'm a swing trader. So I'm using the daily charts. So the 12 major signals boiled down to all you have to do is learn the six bully signals and the six bury signals. Those are gonna give you more trades on very simple scanning techniques. Simple scans will find more trades than you'll ever be able to handle. So each day you're gonna have a supply of training or of signals. So not only do you have a supply but you can go through a very simple cultivation process to see which ones are the best. So one of the first things that we know about day trading is there's two strong, two strong day trading functions. One is a day trade that you're gonna go in for the day that you wanna be in the right position and be in and out for a day trade. Meaning if you're in a market like this where you can't depend on a price move to continue into the next day, you probably just wanna find the good ones that you can make money on a day basis. The other is the intraday charts, which again, candlestick signals are the accumulative knowledge of everybody buying and selling for a specific timeframe. I used to trade the E-minis off the one minute, three minute, 10 minute combination. So we're gonna kinda look at those but we really are looking for those high probability trade setups and those high probability trade setups are from one very simple premise that investor sentiment is the most reliable function of price moves. I always tell people prices do not move based upon fundamentals. Prices move based upon the perception of fundamentals. So the Japanese rice traders have given us 400 years of evidence of what the signals look like. So not only do they show us what to look for as far as the graphic, but they also explain what the investor sentiment was that created those signals. When you have that combination, you've kinda have a grasp on what price moves are doing based upon somebody that might have 50 years of trading experience. Now, we also use an indicator that very few people use. We call it the T-line. And the T-line is the eight exponential move in average and it has Fibonacci characteristics mean it acts like a natural support and resistance level of human nature. So here's the most powerful screen in this whole presentation that if candlestick signals are the graphic depiction of investor sentiment and the T-line is a natural support and resistance level of human nature. When you combine those two, you've got an extremely powerful high probability trade setup. So very simple rule. If you see a candlestick buy signal and wanna close above the T-line, you can stay long until you see a candlestick sell signal and a close below the T-line. A kicker signal, one of the 12 major signals. You stay long until you see that sell signal and a close below the T-line. That combination because as you can see there are sell signals in here, but they don't confirm that there's been a major change of investor sentiment. So if you get nothing more out of this, just that simple indicator, the eight exponential move in average, we call it the T-line short for trigger line and it works in both directions. If you see a candlestick sell signal and a close below the T-line, you can stay short until you see a candlestick buy signal and a close back up above the T-line. There is truisms in candlestick analysis. One truism is the further away you move from the T-line, the higher the probability it's gonna come back and test it. So if you're in the overbought condition, which in my case, I use stochastics, any stochastics above 1233, my stochastic settings are, well, I just said that, 1233. So if I see a sell signal in the overbought condition, way away from the T-line, we have a doji rule. It's gonna move in the direction of how they open after a doji. That means we're taking profits right here because where do you think the next likely target's gonna be? Back down to the T-line. Or where do most people sell? These are the basis of candlestick analysis is just human nature. Where do most people sell? They panic sell at the bottom. Look how far away you are from the T-line when you start seeing buy signals right on the 200. That gives you, if you've been short, that tells you it's time to start covering you short and going long. I always have to tell people, this is not rocket science. This is just, you don't have to be a sophisticated technical analyst. All you have to do is see what the signals are and where they're occurring on the chart. So first of all, anything we do as far as what type of day trade we're gonna put on is we wanna see which direction the market is going. Now we called the bottom because here's one of your strongest signals. That's a morning star signal. Also with a kicker type gap up and a close above the T-line. So the simple rule is if you see a candlestick buy signal and a close above the T-line, you're probably in an uptrend. Also, the next signal is what we call a doji sandwich. So we've got a morning star signal which is one of the 12 major signals followed by a doji sandwich which we call a morning sandwich or a McMuffin. This is a very powerful reversal. So we were buying right here when all the talking head experts were saying, oh, we're gonna go for a double bottom. This isn't the bottom. We were buying like crazy because this is your strong reversal signal. This is your J-hook pattern which told us our next likely target was gonna be up here at the 50 day moving average. The green line is a three EMA, the three exponential moving average. A whole different topic but it becomes more effective the further away you move from the T-line and it provides a little bit more comforting confirmation that if the three T-line comes up through the T-line it's confirming your signals. So we were buying Zoom and if you're even day trading Zoom, there was two factors. One, we had buy signals. There's our doji spinning top right off the 200 day moving average. Stochastics in the oversold area starting to come up closed right on the T-line. If it opened positive the next day, what was it telling us? It was telling us it was confirming the buy signals and telling us the T-line was not acting as resistance. You could be buying this on a bullish day trade or we know the doji rule which is very simple. The doji rule says it's gonna move in the direction of how they open after a doji. So if they open positive we're buying immediately because the probabilities of this day right here being the same as this day right here basically says you have a doji sandwiched in between. That is a very high probability trade setup. Why? Because human nature works the same way. So the doji rule, very simple. A price or a trend we're usually moving the direction how they open after the doji. Look what was happening on Amazon. There was our best friend at best friend signals a doji followed by a gap up. Then we had a doji opening positive here. Just puts us in the right place at the right time. Now a lot of people say, well, shoot, I don't wanna be buying a stock that's already moved up that great. You do if you know what's happening based upon human nature. Same thing on a Peloton, doji rule. If it opened positive this day right here it's probably gonna be the same magnitude as this day right here. So if you're kind of concerned about sitting in positions for more than a day because there's been so many days that you see like this up, down, up, down, up, down. Can't really get a grasp. But once you start seeing the signals or patterns you get a much more clear indication of what's going on. Yes, should have mentioned don't be afraid to ask questions while we're going along. I'll try to talk fast so we have plenty of time to take questions. We were watching this one. This one was yesterday, codecs. You could see the wedge formation. This is what we call a double doji setup. What were we looking for today to see if it was gonna open positive? That's because we know if it opens positive it's doing a double doji and that today's trading would be the same as this trade right here. There's our doji sandwich or our McMuffin. I forgot which is when this was on. Oh, ML, SS. I forgot to put the title up here where we could see it. But that would imply that if we saw a McMuffin, a morning star signal followed by a doji sandwich, a close above the T line and a close above the 200, if it opened positive the next day you could be buying with a high degree of probability that you're gonna get a good day trade out of that. This is what we call a bobble breakout. A bobble breakout is a J hook pattern. A J hook pattern looks like a J hook, but it's more defined in that you can see exactly where the failure was when it failed at the 200 day moving average and where did it move back to? Right smack dab on the T line and did a bullish harami. What's a bullish harami tell us? Tells us the selling has stopped. Where can we be buying with a high degree of probability you've got a good trade right here? Because if it breaks out through the 200 what type of pattern do we have? A J hook pattern, which we know wave one and wave three are gonna be the same and where do you think everybody and their brother is watching? They're watching to see what's happening right at the 200. We can be buying here and getting out somewhere up here during the day. So riot, oh I didn't even check to see what riot was doing today. Same scenario and the qualifying indication that you've got a bubble breakout potential is when they failed at that level look where they moved to right back to the T line. Now right back to the T line statement is relevant because nobody has the T line on their charts. When it starts trading up through here we've got extra evidence that the J hook pattern bubble breakout is about ready to start. Anytime we can see a pattern this is what we call a fry pan bottom. Where's the breakout level? Right about where the pattern starts. We know if it opens positive we can be trading positive. When it trades positive what's that tell us about this big fry pan bottom pattern? But if it opens positive the next day we can still be buying on a day trading basis. Now my rhetorical question always is do we always get big huge price moves like this? Definitely not. But the probabilities of being in a big price move like this based upon pattern breakouts is extremely high probability moving in that direction. Are there other shorter time periods do you use together with a daily one? Yes. And I'll show you that here in a minute George. And again it becomes more relevant to go to a shorter timeframe. Look where our t-line is and look where the price is. That may be where we go to a 10 minute chart to see what's happening. So if I've got something like space yesterday closed right on the t-line what would we want for a confirmation? A positive open and start trading positive. I think space opened right here and immediately started trading off. So what did that tell us about the strength of that move? You didn't do it because it didn't break out. We bought DEAC today because there's your bubble breakout. We could be buying as soon as it opens positive because we knew the probabilities was that it was gonna trade positive. HDNP I didn't check to see what this one did but there's your bubble breakout setup. So very simple, if then, if it opened positive then you wanted to be buying because that would tell you your J-hook pattern which is much more defined by the bubble breakout was gonna give you a high probability trade. So when we're looking for day trades meaning we're gonna sit in for most of the day and then come out near the end of the day we wanna see what the market direction is doing which we can do very easily because the candlestick charts are not based upon any trading entity. It is the graphic depiction of what's going on in human nature so it works for indexes, stocks, bonds, currencies, commodities, tulip bulbs, anything that has fear and greed in it. Then we can look to see what the pattern or a signal setup is and then we look for our open price confirmation. Not a difficult process. How many bars do you watch before you decide if open positive or negative? None. If I see a pattern setup Dwayne and it opens positive that means the probabilities of it confirming that pattern is extremely high. And I often get asked that question. How many, that exact question, how many days, what percentage does something have to move to confirm that you're in an uptrend? And the answer is zero. If you see a candlestick buy signal and it opens the next day confirming the buy signal, we're buying immediately. Meaning we wanna see it open and start trading in the direction that we expect. So there's always the question what if it opens positive and immediately starts trading lower? Well, you watch. You don't have to jump in on minute one or second one. We will sit and watch. I would rather be 12 cents, 80 cents, $1.10 late but knowing that the probabilities are pretty strong that the price is moving in the direction we expect after that pattern setup. So if we're doing intraday trading, let's see. In most cases, the prices goes back after the breakout and your position may be closed by the stop loss even though you place it just after the t-line. Should we wait for the second breakout for this reason? Or you wait for the end of the day to see where it actually closes. So the logic says, if you see a candlestick buy signal, I'm just gonna pick out an example that it closed right on the t-line and opened positive the next day and then after trading positive for a little bit, it starts pulling back, you give it to the end of the day because the signal told us that there should be a change of investor sentiment. Doesn't mean it's gonna immediately shoot straight up but the probabilities are that the eventual trend will be up. So intraday trading. First of all, we wanna know which direction our trading entity is. In this case, the stock. So Netflix, we know was expected to move in this direction because of our breakout. Wave one, wave two, look at our little Morningstar best friend signal. That means we can go to our 10 minute chart and look what the 10 minute chart looks exactly like a daily chart or a one minute chart or a weekly chart. So we could be buying right here. How long do we stay in this day trade until we see a candlestick sell signal and a close below the T line? What do we see happening right here? Doesn't close below the T line doing a J hook. Where do we close out? When we see our doji in the overbought condition and it starts trading back below the T line or closes below the T line. This is not rocket science. Investor sentiment works the same way time after time, year after year, century after century. Or if you come back into it, there's our doji sandwich after a long legged doji closes above the T line. If we're buying right here, how long do we hold? Well, look what happens when we get back up on our 10 minute chart in the overbought area. Doji hammer or hanging man, doji hanging man, one of the 12 major signals and a close below the T line. We're closing out right here. When we close out right here, what's our next criteria? Well, we've got candlestick cell signals on close below the T line. We can start going short until we see candlestick buy signals on an obvious level in the oversold area. Prices move the same way time after time. There's your big evening start signal on a close below the T line, on lean hogs on a 10 minute chart. You can go short until when? You're in the oversold area. You start moving away from the T line. Progressively, you start putting a stop right here because you are in the oversold area. When it comes up through there, where do you think the next target's gonna be? At least back up to the T line. If you're buying down here and it goes through the T line, where do you think it's heading to? The next major resistance level. Where do you take profits? Probably right here. Live cattle on a 10 minute chart. This is what we call convergence analysis. Look at all the things that you can analyze to tell you that this is probably a place to be buying. There's the bullish harami, which is in Western terminology known as the inside day. It tells you the selling has stopped and where did the selling stop? Right smack dab on the 10 minute chart. What confirms a bullish harami? A positive open the next day. We're sitting in the oversold area. So you got a bullish harami, right smack dab on the 50 move an average. It opens positive, closes above the T line. How long do you stay long now? There's your evening star signal and a close below the T line. You close out the position. The YMs, if you're trading the indexes, look at your bearish and golfing signal. In the overbought area, where do you start shorting? You're knowing that the downtrend's starting on the 10 minute chart. As soon as it starts trading below the T line. How long do you hold this? You might stop out here. You might buy here, but you close it right back out when it doesn't go in this direction and maybe go short again. Now to kind of confirm that, I don't know whether I did it. Not I didn't do it, but if you want to get further confirmation of what your signals are doing, look where your 10 minute chart did a bearish harami. Does the candlestick technique work in a flat market as well? Where the distance between the stop loss and the, let's see, RL is very short. No, what the candlesticks signals do is they work, but what they're telling you, if you're looking at a market trend and they're moving up and down above the T line and below the T line, what's that telling you? It's telling you there's no great support. I'm just gonna read your word. No great market direction. It's telling you there is no market direction. What we're looking for is what is the trend direction? If it's moving sideways like this, it's telling us it's moving sideways. We don't want to be trading right here. Where's our next buy right in here? So if I'm looking at a potential sell, there's our bearish harami in the overbought area. Again, this is the 10 minute chart and look at the pattern that you can see. There's your J-hook pattern. So if you're buying here a candlestick buy signal, bullish engulfing, close above the T line. Look how far away you've moved from the T line, a bearish engulfing. You might be closing here because where's your next target? Back to the T line. What do you want to see? See if it's gonna hold. In this case, I should have pointed out that the red line is our simple 200 day move and average on a daily chart. The blue line is a 50 day simple move and average. And the reason we have those on our charts is because every major money manager around the world uses those move and averages to make their decisions about what's going or what they're gonna do with their portfolio. Then we've got the 34 EMA works reasonably well as a support and resistance level. The T line, the eight exponential move and average and the three T line, the three exponential. Where do we find T line on a platform? If you go to your chart fade, just like you would any other move and average you put on your chart, all you're doing is putting on the eight exponential. So if you're putting on the 50 simple move and average, then you go back up and put the eight exponential moving on, it's just a move and average. So if I think it's reversing here, I can get a little bit quicker view, I think, using the five minute chart. So I see a shooting star, I see a very left, right combo. Did you say the three EMA? Yes, you can, yeah, the three EMA is just kind of a confirmation. It's this little green line that works more effectively the further away you move from the T line. And it also adds more confirmation that when you see a cell signal in the three T line coming down through the T line, that gives you a little bit more added confirmation that the selling has started. So very simple trading technique. I use the 10 minute chart as my bellwether. If I think things are turned around, I flip to my five minute chart. If the five minute chart is telling me there's a change, then I can go back up and say, oh, yep, it's probably selling off here. And then when would I start closing my position, probably right in here someplace because of the five minute chart? Where would I go short when the 10 minute chart was confirming that it was staying below the T line? Crude oil on a 10 minute chart, there's a bullish engulfing. I can make a good quick trade and something like this because where was I anticipating the next target to be? Right here. So if I was buying down here, I was gonna watch to see what happened here. What happens up here? You start seeing cell signals, you go ahead, you close out the trade. And if I wanna get in a little bit quicker or get quicker confirmation, there's kind of our little bullish pattern set up on the five minute. This is what we call a T line crunch where they crunched the price. They couldn't close the price back below the T line on the five minute chart. And it crunched it right up through an obvious resistance level. Well, the 200, same scenario. You stay long until you see a cell signal and a close back below the T line. So here's our trade today. Remember Codex was doing a double doji setup. There's very simple rules. It's gonna move in the direction of how they open after a doji, especially after we see a double doji setup, especially after we see a wedge formation, especially after we see it's come up through the T line and not coming back down and it opens positive, we're buying immediately because what's it telling us? That more than likely the magnitude of this day, which is what's going on right now, or when I did this chart an hour ago, that today's trading was probably gonna be the same scenario as that trading right there. And what does that kind of imply? That if this candle is the same magnitude as this candle, what's it tell us about our wedge breakout? That we've broken out. So we're looking for that good day trade, or if you're a swing trader, it's gonna tell you there's probably a lot more upside after breaking out of the wedge. How do we get a T line again on a chart? Just put the eight exponential moving average. Usually you have a place where you can set up your indicators. If you go to moving average, then it will ask what do you wanna put on it? And there'll be a box that shows what day or what timeframe. And then there'll be another box where you click on simple or exponential. So anyways, now, if you wanna trade this one, I didn't put up the 10 minute chart, but because we know the probabilities of it breaking out and creating this type of move, we don't know whether this move went up, down, up, down, up, down, but at least we knew the direction that we should be trading. So we're probably trading every time it backs off and does a buy signal, we'd be buying. And then when it hit a peak, we'd be selling, but maybe not going short. Just waiting for it to pull back and getting back in on the 10 minute chart. So here's the logic of candlestick analysis. Where do most people buy? They buy exuberantly at the top. So when we saw today where Amazon was trading way up here, what was an alert? Look how far away we are from the T line. What is the normal reaction from human nature? You get a big price move. At some point, people are gonna start taking profits. We just wanna be aware of when that's going to occur. And again, the alert is the distance away from the T line. Do you use any other tool beyond the candlestick analysis to get confirmation for short or long in order that you will probably find the right direction? Yes, you're looking at it. The Japanese rice traders have a very simple strategy. Now this is, I'm gonna kind of digress here for a little bit. When I first, I was a stockbroker for eight years back in the late 70s, early 80s in Houston, Texas. And the one thing I discovered back then was that the brokerage firms had no more idea about what made prices go up or down than the man on the moon. They would, their philosophy always was you find a good quality company that had good earnings, good management, you buy it and you hold a long term and you're gonna make money. And that you couldn't time the market. Every time I hear somebody tell you that you can't time the market, it's because they don't know how to time the market. The Japanese rice traders have a very simple philosophy. If you see a candlestick buy signal in the oversold area and you see that buy signal confirm, you probably got a high probability that the reversal has occurred. The whole reason we're looking at candlestick signals in the first place is because the Japanese rice traders have identified what a candlestick reversal signal looks like. And not only that, they've had enough time to tell you what the investor sentiment was that created that signal. So the other side of the coin is if you see a candlestick buy signal in the overbought condition, it doesn't mean very much. If you see a candlestick sell signal in the oversold area, it doesn't mean very much. Logic says, if you see a candlestick buy signal in the oversold area, start looking for a reversal. If you see a candlestick sell signal in the overbought area, start looking for a reversal. I guess the caveat to that is you're going to have some big moves away from the t-line. What does that tell you? It tells you there's exuberant buying. Now if it does, if you get way up here and you're that far away from the t-line, there's a very simple rule. You flip to your 10-minute chart. So why would we flip to a 10-minute chart if we're trading on a daily chart? Because even if we were day trading this, how long do you hold this position until you see a candlestick cell signal? There's your bearish Harami and a close below the t-line. So if you bought this today, you're closing out right here. Candlestick signals work the same way time after time. And I tell people it's based upon the most consistent indicator in the world, and that's human nature. So when we're looking at a market trend, or the first thing we want to analyze is what is the overall market trend? Now we can do very simple scans for the stocks that are producing the best buy signals or the best pattern setups in that market trend. Then we can analyze whether any one of those are going to be coming out of a breakout level. That dramatically improves the probabilities that you're going to be in the right place at the right time. Why is a breakout level important? Because if we can see a pattern setting up where it closes right at that breakout level, where do you think everybody in their brother is watching? There's going to see whether it's going to break out and stay above that level. If we know it's a pattern breakout, we can be buying as soon as we see the positive open. And what happens to everybody else? They're waiting to see if it's going to stay up above the breakout level or they're going to wait for X percentage above that breakout level, which does two things for the candlestick investor. One, it gets them in early. So if it is a profitable trade, they're going to obviously make more profits. If it doesn't work, what is the advice that most investment advisors tell everybody? Cut your losses short and let your profits run. And I've been in the business for 40 some odd years, I hate to say. But I've never heard a single one of them tell you how you cut your losses and let your profits run. Candlestick signals because it's all based on common sense analysis, that everything you see on a candlestick chart is just common sense investment perspectives put into a graphic depiction. It tells you when you should be right back out of that trade so you can move on to another one. If I'm trading intraday, I'm seeing which direction my trading entity is moving, if it's a stock or a commodity. I go to my 10 minute chart. I see when things are starting to set up on the 10 minute chart. And after that, I confirm it with what the five minute chart is. And if I get right down to final pull up pushing the button, I'll look at my one minute chart to make sure my one minute chart isn't topping out and pulling back, which is kind of going to modify my five minute chart, which means it's going to modify my 10 minute chart. So everything I do with candlestick charts or what everybody should be doing, let me go back a few, is just pure common sense. What's this gap up telling me? We're in an uptrend. How long do I stay in this uptrend because of the t line rule? And again, this is your I tell people don't take my word for it. Put the t line on your chart and see whether it works. If it doesn't work, take it off. But that's the nice thing about candlestick analysis. We know the signals work or we wouldn't be looking at them hundreds of years later. We know the t line works because of the just the evidence that I'll show you a piece of evidence. Look where it opened right here. You'll be very surprised, I guess, is the number of times that a price moves back and hits right on the t line and bounces back up. Now you got to remember nobody has the t line on their chart. So it's hit a natural support level. What is the t line you use? Is it? No, it's an exponential move and average. But again, a very basic concept. If you see a candlestick bi-signal to close above the t line, you can stay long until you see a candlestick cell signal close below the t line with the caveat that the further away you move from the t line, the higher the probability it could come back and test it. Whether you're trading off the 10 minute chart, as I mentioned before, I used to trade the e-minis when I was much younger, which wasn't that many years ago, off a one minute, three minute, 10 minute combination. You can use RSI also. It doesn't matter what you're using. As long as when you use it, you find it's successful. I have people say, well, why, why didn't you try the XYZ indicator? Well, I can throw it on there. And after a couple of weeks, I find it does not improving my trading. I take it back off. As you can see, the charts are very simple. And that's because there's the main criteria for analyzing anything on this chart is the signals themselves. Everything else is a confirming indicator. So when you put all these in order, let me go back one. If I'm looking at a market trend, now again, this is for the presentation today is based upon day trading, finding that big move that you can get in and out in one day. But if I'm looking for a swing trade, my normal trades are swing trades usually anywhere from two to 10 trading days. I'm looking at the market trend. Now, if you had a day like we saw way back when when you had a big, huge reversal, and you've got hundreds of good looking charts, how do you find the best one? Very simply, on some of the scanning softwares, you can go to sectors and you see which sector it had moved the best or has the best looking chart. Then you can go to that sector and find which stocks in that sector had the strongest candlestick reversal charts. So essentially, you're putting all the stars in alignment that you're you're putting your trading funds in what now has turned out to be the best trade setup based upon human nature. Is a t-line as effective on the one minute and five minute? Yes. Everything that you see on the charts are what they call fractal, which means they work just as well on the one minute chart as they do on the weekly monthly chart. Again, if you go back to the definition of candlestick analysis, is that the candlestick signals are the graphic depiction of everybody buying and selling during a specific time frame. All the other indicators still confirm exactly what's going on in investor sentiment on those time frames. So if I am trading any like lean hogs, I'll look and see what the daily chart looks like. If it's a bullish chart setup that day, I'm going to probably be trading off my 10-minute chart on a bullish time frame and then confirm it with a five and one minute. My swing trades are usually two to ten trading days, George, which means I'm going to trade off the daily charts. And again, I'm looking for that combination. A candlestick reversal signal in the oversold condition and it climbing up or closing above the T line. That's an extremely strong probability there's been a change of investor sentiment. So a lot of people say, well, what if you see a buy signal and it's not doesn't close above the T line? Well, the buy signal closes relatively close to the T line. I'd rather wait to see if they're going to take it up the next day and close above the T line. I'd rather be a day late but know that my probabilities have become extremely strong that the uptrend is now confirmed. Do we go to the sector instead of the trend? No, what you're doing is I'm reading and thinking. What you're doing is your first analysis is do we know the markets are heading up or down? We can do that very easily based upon analyzing the chart. Now, if there's lots of stocks moving up in the trend, how do we know which ones are the best? Basically, how do we make the best hay while the sun is shining? Then we just go to the sectors and we scan to see which one of the sectors have the best bullish charts. And then once we see which sectors, which again, if we see bullish confirmation in the sectors, what's it telling us? It's telling us the big money is probably buying those sectors. Then we can go to those individual stocks that make up those sectors and scan to see which ones of those have the best looking charts. So again, that's putting all the stars in alignment that you're in the right place at the right time. Do you have a minimum stock price you trade? Yes, my trading universe can is I want stocks greater than five and more than 200,000 shares a day on average. The reason for that is most brokerage firms won't margin stocks below five dollars. And I know that every time I put on a trade the probabilities are greatly in my favor, but I'm going to be in the right direction. I don't know whether that right direction is going to produce a 3% profit or a 300% profit. I'll know that once the trend starts and it stays above the t-line. I want to get into stocks that have a minimum of 200,000 shares a day for two reasons. One, when I decide to get in or out, I don't want to have to sit around for five, 10, 20, 40 minutes to see if they can execute my trade. I want to get in and get out and move on to the next one. Secondly, the more volume you have in a stock, the faster the signals will set up because the signals are based upon the executions. So if you've got low volume your signals might be slow to to set up or diminish. So now that doesn't keep people from doing their own trading universe. On my website, candlestickforum.com, we've got our chat room open every day. We've got about 200 people in our main room and we've got about 20, 25 people in our options trading room. I put out two or three stock picks every night in a video format not so that people have picks but people can read or see the video and understand why those picks were recommended, the pattern setups. So the chat room is very effective because it's twofold. We've got people in there that have been trading candlesticks for years and are very good at finding good trades. So it gives you another supply of trade setups. And two, if you're trying to learn candlesticks a lot faster than trying to learn it on your own you can ask questions in there and you can get feedback back and forth. So through the years I've discovered that I want to try to teach people how to use the candlesticks so they can do their own scanning so they're just not told what to do. They can make the analysis that they can use for the rest of their life. So obviously if you tell people what to do they if they're not told what to do and they don't understand what they're doing it for you kind of lose the effectiveness. And I always express it as the kind of the cop standing on the street corner and he sees this drunk weaving down the street blows his whistle pulls the guy over when he walks up to the car he looks in the window in the back seat there's a penguin sitting there and he goes what the heck are you doing with a penguin in your back seat and the drunk said oh I found him out on the street and I don't know what to do with him. The cop said we'll take him to the zoo and the drunk said oh I didn't think of that well the next day the cop's standing on the street corner here comes this car weaving down the street he blows like it was his whistle pulls the guy over walks up to the window in the car or the penguin sitting in the back seat. He goes I thought I told you to take the penguin to the zoo. The drunk said I did he liked it so much today we're going to a baseball game so if you don't understand why you're doing something you don't learn from it. Are your terminology of candlesticks universal? The signals are yes. Now there's a couple names of patterns like the j-hook pattern was my name. The McMuffin was just kind of short for having to say oh you got a morning star signal followed by a doji sandwich but all the other signals are are Japanese terminology. I don't use the Aikomuku cloud because it's not as effective as the t-line. I've been trading all sorts of technical indicators for no decades and the best combination I have found is the the t-line and the uh the candlestick charts. Now I could take everything off the chart all the moving averages keep the stochastics the uh the candlestick signals themselves and use the t-line and I could trade very very effectively and I say this because when I first when I was a stock broker in Houston with Kidder Peabody, Cowan and Oppenheimer I was the worst investor in the world but when candlesticks came along every time I looked at a chart or started learning it the thing that kept whacking me in the side of the head is this makes sense and the more I looked at it the more sense it made. So it does two things for you if you understand that the probabilities are greatly in your favor because of candlesticks it helps you with your discipline that you start getting rid of your emotional trading and you don't listen to what all the talking heads are telling you is going on. There's one true indicator that you want to watch and that's the market itself or the price moves itself. Candlestick signals are actual decisions not prognosis or predictions they're what everybody's actually doing. Do you trade future indices? I don't trade future indices just because I don't have time I I can make enough money trading soybeans cattle the dollar you can trade the indices if you want to whatever what I tell people candlestick signals work on everything it's the graphic depiction of human nature no you're not trading the t-line you're trading this signal can the t-line is merely a confirming indicator oops you scroll past me here do you trade future if not can you supply the same apply the same candlestick technique and time frame daily combined yes you can pick out whatever combination you want to use some people use an hourly chart and the daily chart it's whatever time frame there's other people that want to trade active they'll use a one minute five minute 10 minute combination if you're trading less active during the day you might use a five minute 15 minute hourly combination oh it took me probably a few months to learn candlesticks again that's because I didn't have anybody around to to confer with you can pretty much learn how to trade successfully if you just learn what the signals are telling you and I tell people even if you don't use candlesticks as your primary consideration if you are following somebody that you like what they're doing if you put candlesticks on your chart it's going to even make it that much more clear to see what's working and what's what's not working these indicators just got work on any market conditions it'll tell you whether you're in uptrend downtrend or sideways if you're in a sideways market and I've got 10 positions on it might be I have five good shorts and five good longs if the markets in an uptrend I might be eight longs and two shorts oops I don't want to run out of time here did you say you choose stocks that have over traded on average yes over 200 000 shares a day that takes the trading universe down from 9500 down to about 3100 and when I do a scan you can scan for the best trades in less than 20 minutes each afternoon just by having your preset scanning criteria and then doing some very simple sorting what charts do you use brand names metastock is a good one we have all our formulas all our signals and patterns over on metastock same thing with TC 2000 you can set up your scans if you're using thinkorswim but it's a little bit more cumbersome but all our formulas are usually on a lot of the ninja trader I think trade station has them this works for options remember options are merely a way to buy stocks so you're trading not trading options because of option prices you're buying options to control a stock that you're analyzing what which direction that stock is moving can I use the t-line alone I did not see a j-hook of Lynette very simple once uh and that's what we do in our chat room is keep emphasizing and I have a training session every Thursday night from eight to nine we go through the patterns the signals what the market's doing what it just gives you enhanced analysis of how to use the candlestick signals we do the same thing Monday from members and then the chat room is open all day long uh I know our Scott it's much more uh I don't want to say defined much more uh let me get to it yeah it's 47 buckaroos we advertise it as an hour but everybody that comes to these sessions realize that they usually go on for two or three hours so we use these sessions to go into detail and the one thing that we do constantly is the repetition because candlestick analysis is merely merely the recognizing the signals and then understanding what those signals are are illustrating uh Don we do have trial offers I have no idea what they are but if you would email abraham at candlestickforum.com he can give you much better idea so this uh Saturday session for 47 bucks we always make our mantra uh that you're going to get a heck of a lot more information than you think because I I go on and on keep showing examples we usually start at 9 30 uh on uh Saturday morning and supposed to go to 10 30 but we're usually done around 12 31 o'clock yep there you go all right well Falstow thank you for the invite today I hope everybody got some information this was we just this was the tip of the iceberg if you learn the 12 major signals which is your bread and butter there's about eight patterns they're extremely high probability trade setups again based upon human nature and once you see those patterns and you can add the signals to them again you're dramatically improving your probabilities uh again going back to the simple statement prices do not move based upon fundamentals prices move based upon the perception of fundamentals which means like the candlestick graphics tell you exactly what's going on in investor sentiment thank you Falstow thank you everybody again come join us uh Saturday I think you'll find you're going to get a heck of a lot more than your money is worth and this is not stuff that uh this is stuff that once you get it into your head it's going to be useful for you no matter what trading uh technique you're using after that Steve thank you so much for coming Steve and uh it's always