Warp, a hollow red candle at a new low, or close to a new low, is usually a bullish indicator when accompanied by greater than average volume.
Look at this chart, frozen in time on September 23.
stockcharts.com[h,a]daclyiay[d20010610,20010923][pb10!b50!b200!f][vc60][iut!Lh14,3]&pref=G
Now here's what I was looking for on September 24.
stockcharts.com[h,a]daclyiay[d20010610,20010924][pb10!b50!b200!f][vc60][iut!Lh14,3]&pref=G
See that nice gap up? And, it stayed up! That gap gave enough room for the NASDAQ to pull back without re-testing the low again. And, that's exactly what happened. Then the other indicators started to kick in and support a 50% move over the next two months.
stockcharts.com[h,a]daclyiay[d20010810,20011206][pb10!b50!b200!f][vc60][iut!Lh14,3]&pref=G
I'm not impressed with today's action so far. If we don't see a lot of volume, it would be best to sit tight and let some consolidation take place.
stockcharts.com[h,a]daclyiay[pb10!b50!b200!f][vc60][iut!Lh14,3]&pref=G
Oh yeah, I'm back from vacation. I still need to unpack and I have some yard work to do.
dabum |
