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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (44558)

1/24/2013 8:50:35 PM

From: robert b furman

2 Recommendations Read Replies (1) | Respond to of 221023

Hi vendit,

I agree with your read.

I would strengthen the critique about it being a spinning top.

To me it better fits a long legged Doji,which is a reversal candlestick - that requires confirmation.

Splittin hairs here ,but a reversal nears - how big -I'm not sure.

In my wave count,the last corrective wave was a zig zag,by the rule of alternation, that suggests a quicker and less damging corrective wave.Hopefully just an ABC flat - which still should be a fib retracement and maybe go into the previous 4 wave on the way up.

I'm not sure a short is appropriate here but if one of my favs goes parabolic over the keltner /BB band -I may just sell a call.Had an itchy finger all day - maybe Mr softee will trigger the slippery slide in the morning.

Thanks for your great read - it matches my gut feel FWIW.

Bob

BEARISH LONG LEGGED DOJI

Type:	Reversal
Relevance:	Bearish
Prior Trend:	Bullish
Reliability:	Medium
Confirmation:	Required
No. of Sticks:	1

Definition: Get the highest rated stock from Americanbulls for this pattern >>>

Long Legged Doji is a doji characterized by very long shadows. It shows the indecision of the buyers and sellers and it is an important reversal signal.

Recognition Criteria:

1. Market is characterized by overall uptrend.
2. Then we see a Doji that gaps in the direction of the uptrend.
3. The real body of the Doji is either a horizontal line or it is significantly small (its length is not more than a few ticks).
4. The upper and lower shadows of the Doji are long and almost equal in length.

Explanation:

This particular doji shows that there is a great amount of indecision in the market. Long-legged Doji shows that the prices traded well above and below the opening price however they closed virtually at the level of the opening price. We have an end result with little change from the initial open despite all the excitement and volatility during the day showing that the market has lost its sense of direction.

Important Factors:

Long Legged Doji is more important at tops.

Since the Long Legged Doji is a single candlestick pattern, it is better to see confirmation in the form of a move opposite to the prior trade on the next trading day.

It has been a good run and going parabolic up over the Keltner band is possible.I think it would be a time to short the top however for a quick trade in the anticipation of a retracement/corrective wave.Just being prudent I think.

Bob