Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: ynot who wrote (22340)	9/26/1999 9:09:00 AM
From: stan s.	Read Replies (2) \| Respond to of 43080

Hi ynot. On this chart you can the bearish engulfing lines (red arrows) foretell the weakening of the Nasdaq during these short upturns, encompassed within the broader longer term uptrend. geocities.com The bearish engulfing line is when the current down day (open/close) completely engulfs the previous up day open/close (and as noted by Inspec) is most telling when the 2 day pattern has been preceded by an uptrend. As far as the green arrows are concerned...these upturns have often been preceded by bullish haramis (inside days)...the current up day (open/close) is encompassed within the previous down days open/close. This often signals a reversal during a downtrend. The reverse of the above signals woud be a bullish engulfing line and a bearish harami... Harami, iqc.com Engulfing, bullish and bearish, iqc.com Piercing lines, iqc.com Dark cloud. iqc.com These signals of course are not stand alone signals per se...they simply offer or need attending confirmation. One word about software and Candlesticks in general. Some software will point out some of these patterns...but it's important to recognize them at a glance...beacause there are many almost or similar patterns that while not quite fitting the exact criteria..are close enough to have the same effect. As for the outlook for the Naz. Best case scenario would be a meandering down to that up trend line. The line is moving up, so call it a test of 2560-2600 within a few days...that would give it the required 10% decline of a correction (from summer's high)...and might very well coincide with a Dow test of 10,000. Could happen, we'll see...the key would be for the Naz to continue to hold that line on closing basis, else it will have to test lower support as both the NYSE and Dow are doing. By the way that line that the blue Naz dips down to test periodically has gone on for longer than the chart shows and has 8 or so touches or near touches, get the popcorn ready, should be interesting. Stan