Dennis,
>>>> Thursday's price bar is what is called an inside day, since the open, high, low and close were all smaller than the day before. Inside days are very tricky. Bulkowski was unable to mine much data in The Encyclopedia of Chart Patterns. He does say, however, that if you have to bet, bet on a breakout in the direction of the existing trend. And that is upward. <<<<<<
Dennis. Just for discussion, this is where I believe candlestics may be more accurate. As you know INSIDE DAYs are HARAMI's. In the above quote, it is claimed that the trend in up. According to candlestic which is really designed mainly for the short-term, the trend is clearly down based on the immediate previous days. The NDX was down over 250 points on TUE & WED, combined, and yesterday was up less.
Im not saying that the bearish haramis will definitely work, since haramis only have a fair to low reliability, just that candlestic are more precise in their methology for the very short-term. |
