David, took some cajones to show that post from July. I think I'd be keeping that to myself<GGG>
Actually I THOUGHT that JULY was the month I went short, so I was looking back to see why. (Good to stay in practice)
There was a three CANDLE pattern the second week of JULY(11-12th?) called a DOJI EVENING STAR. A rare FORMATION.
The first CANDLE has to be a LONG WHITE, 2nd is a DOJI, and the 3rd a LONG BLACK.
The body of the DOJI must NOT touch the other two candle bodies to qualify as an EVENING STAR. (if there is a GAP between the DOJI and the two other Sticks thats an even stonger sell sign)
An Evening star itself is rare, BUT with the DOJI, it makes an even stronger statement. I went short the next day. Didn't think twice about it, that's how strong the indicator is.
There was a HANGING MAN (same thing as a hammer except after a prolonged UPtrend) the day after to totally confirm the correction/crash
The Reverse is also true. If you had a prolonged downtrend and had the exact opposite of the formation I described, then you have a MORNING STAR or a DOJI MORNING STAR if the second candle is a DOJI. Again, VERY RARE and I would be mortgaging the farm to BUY if I saw it and everything else was confirming.
If the DOJI has a TRUE GAP on either side of it, this is rarer still and called an ABANDONED BABY. Big time BUY signal.
Anyway, I just thought it VERY interesting how accurately the EVENING DOJI STAR predicted the future. Well worth a look.
Jeff
Hey, when are earnings anyway<GG>
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