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.

Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Steeliejim who wrote (12909)	3/19/2002 5:47:36 PM
From: kodiak_bull	Read Replies (1) \| Respond to of 23153

Steeliejim, I'll let DB pour some more concrete and butt in on your question. Today's SMTF pattern, by itself, is not of any particular importance. It's a hollow white body with a somewhat longer tail (or shadow) out of the top. As opposed to the doji (star) pattern yesterday, this one generally says that things are going hunky dory, as it opened, tested higher and closed down off its highs but still well above its open. But taken in conjunction with the two preceding days' patterns, it is pretty bullish. TA doesn't necessarily tell you where you'll be tomorrow or next week but it's pretty good at telling where you are and where you've been. As anyone knows who has traveled even a little, knowing where you are and where you're coming from can be pretty valuable. SMTF plunged over the course of 3 straight days, pretty long red (negative) candles on lots of volume and the last day was a hammer pattern (body at the end of a downward trend with a long tail (takuri) extending below), which if confirmed, is a pretty strong reversal pattern. The next day was a doji (star) which indicates a pause or indecision, and which is not confirmation. But today's somewhat nondescript white candle is confirmation. So, to recap, over the past several days you've sold off on high volume, had a reversal pattern, a pause and confirmation. In general what does this mean? Higher prices tomorrow and probably the next day. You're still well below the 10 DMA (which is about 15$) and I would expect the stock to recover to at least that point before pausing again. Otoh, tomorrow's pattern is tomorrow's pattern and it bears watching. You would do well to buy Greg Morris's Candlestick book, it's well worth the $$. Kb