Tex, this is an example of where we both can be right. One's "time frame" should dictate which chart to use. I mentioned I was looking longer term with RRI. The reason for that is that RRI has switched from being a trading range stock to one that is trending, on the weekly chart. When looking at a trending stock, you don't liquidate positions, you buy the dips. It's a different strategy that needs to be utilized, if one wishes to maximize results while managing risk.
When the weekly chart is as strong as the one for RRI is shaping up to be, a Doji appearing on the daily chart, "ON LARGE VOLUME," should almost always be ignored. If the volume wasn't there, my view would have differed for those wishing to trade short term, or even on the pattern itself and its significance. Longer term investors should follow the longer term charts. It's our investing time frame that should dictate our analysis.
If one were looking to enter, or were trading short term, then your assumptions to wait for confirmation, or lack of, would have been the correct strategy but, the volume patterns for yesterday indicated RRI was going higher.
So, we are both right but, people need to know their time frames and follow the proper chart for that time frame.
I hope it keeps trending too! <lol> Thanks.
dabum |
