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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: IndexTrader who wrote (407)	3/11/2000 6:09:00 AM
From: JDinBaltimore	Read Replies (2) \| Respond to of 33421

Hi Susan, Great Find! The COMPX depending on the open Monday; if it has a gap down to a lower open than Friday's Close. and the real body remains below the open would be a text book evening star. I'll attempt to describe this goofy "C-Bomb" theory. 1. Occurs most on 60 min Charts. 2. Is rare on daily Charts 3. Can occur any time in a down trend, ie. not specific to tops. 4. The candle creating C-Bomb is Red, and formed next to a white, the white has no, or a very small upper shadow. 5. The longer the the upper shadow on CB candle the better. 6. The open on CB should be the same as the close on the white. 7. The body of the CB should extend no more than 25% into the white body. 8. And finally for the perfect CB the close of the CB would be a shaven bottom, no shadow extending down. If you find a formation as this on 60 min charts (Indexes Only!) it has proven extremely reliable for a strong down move. Some pretty good examples are on INX/SPX 60 min Chart. 01/14/00 10:30 01/24/00 9:30 02/17/00 13:30 02/10/00 12:30 Caveit: In my opinion candles have not proven too reliable on the NDX and COMPX, and also on highly volitile stocks. Hope this helped. Kind Regards John