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

To: Warpfactor who wrote (14371)	6/10/2002 9:49:37 AM
From: kodiak_bull	Respond to of 23153

Warp: <<Wouldn't a hollow black candle be more bullish than the red one?>> You would think so at first (hollow black meaning that it closed within the body of the previous day's action), but in fact a hollow red is more bullish than a hollow black as a general matter. Why? Because it means that the original gap down was so low that even with a long, positive day and all the selling out, it didn't quite reach up into the previous day's range. It's sort of like an exhaustion gap, only this time exhausting all the sellers. I think another name for it is a hollow red island, where the island sits out there, below all previous trading ranges and signals the end to the selling. The opposite candle is a solid black island, representing an exhaustion gap to an unsustainable high which brings out all the sellers and none of the buyers. Kb