Thean: The TA chart with "candlesticks" you pointed us to at IQ suite some time ago intrigued me and I have been studying them closely. Like the stochs, they began to show warnings last Weds which were confirmed as reversal patterns Thursday and Friday. I was in cash by Friday. I chart 14 stocks each night (FGII, GLM, NE, RIG, GW, CDG, KEG, FLC, EVI, MAVK, BHI, TDW, DO, RON). None of them show any reversal patterns yet. As with most TA, this is not a way to pick the bottom or top, since the patterns may take from one to three days to develop, and may require a fourth confirmation day. However, so far they have been excellent in signaling trend changes. Its not to say in a crazy market like this that a sudden and dramatic change up couldn't occur in a day, but it's more likely to go down or sideways. Caution is necessary as you advised (catching falling knives can be painful).
Alex
Alex |
