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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: No Mo Mo who wrote (48045)	4/25/2000 2:42:00 PM
From: Les H	Respond to of 99985

Island reversal is a three-day pattern. Day 1 is strong down day - black body. Day 2 is gap down at open and close in such a way that gap is still there. Day 3 opens with gap up in opposite direction of day 1 and day 2. Today is day 3. Abandoned baby is variation where Day 2 closes very near its open. It indicates that the panic selling has run its course near term and that potential is for a change in direction since open and close indicate equilibrium. Day 3 is confirmation that buying (marking up prices) has gained upperhand.