Tom; RE:" tea leaves "
on candlesticks...
Message 5551328
Message 5543629
>I must confess that people seem to vary in how they interpret these things--seemed like opinion was divided that Friday's action was either a "hammer" or a "hanging man"...
The caveats of candlesticks, Tom are:
(1) the reversal signals they give require confirmation by a subsequent candlestick.
(2) though they clearly show reversals in sentiment, they make no promise or measure of extent. There is some correlation between the size of the time-slice; ie., weekly, daily, 90-minute, 3-minute, etc., and the extent of sentiment change.
so, they are not very good as momentum trading tools, IMHO.
>>My candlesticks say that the other DownTrend, from mid-July, was buried Friday in a "gravestone doji" intra-day.
>And what does that mean for the market??
It means that the mid-July, acute DownTrend has (probably) been "buried". It means that, the March-April OEX-100 channel, which is relatively mildly downward-sloping, appears to be the best channel to indicate trading-range, given nothing else to go on.
>Is there a point that you would identify as support at a level higher than 522 based on your read??
// 522 / 537-540 / 545 \ 552.5 \ 559 \ 567.8 \ 582
-Steve |
