Monday, March 2, 2009

Looking for a big white candlestick MON

Poking around some of the usual sites I routinely visit daily, I ran across one site that identified FRIs candlestick formation on SPY as a reversal gravestone doji.
http://tinyurl.com/clvevl
http://candlesticker.com/Cs34.asp
Upon further investigation as to the nature of the reversal gravestone doji formation I see that it would be more correctly classified as an inverted hammer, essentially meaning... nothing.
It's a low reliability reversal bullish indicator.
http://candlesticker.com/Cs30.asp
At its current place in time it indicates... nothing.
>> Bullish verification on the day following the inverted hammer is required. This verification can be in the form of the next day opening above the inverted hammer’s real body. The larger the gap the stronger the confirmation will be. A white candlestick with higher prices can also be another form of confirmation. <<
Well... I don't think that's gonna happen MON.

I'm pretty sure most would agree that the various indexes are approaching a TA bottom.
Markets are both oversold and overdue for a bounce.

http://tinyurl.com/7dqqr5
Between HSBC, AIG & Buffet this weekend there should be little doubt about a opening gap-down MON.
A good, solid, bull-faith rattling gap down.
Then a climb. Possibly. I'll take a decent high-volume short covering rally, even.
http://tinyurl.com/byro6n

So, I reviewed bullish reversal candlestick patterns with gap down reversing upward.
http://candlesticker.com/Bullish.asp
If we get a big white candle MON that would look really nice - but alone, it's weak & doesn't mean sh!t.

http://candlesticker.com/Cs17.asp

You need three big white candles in a row, three bullish soldiers, to mean diddly.
http://candlesticker.com/Cs63.asp
Maybe even a bullish three outside up.
http://candlesticker.com/Cs62.asp
And once again, that'll depend upon what happens TUE.

FEB 17th there was a low volume break away gap down.
It may reverse up.
MON may be a good time to begin that process.
Otherwise, a second low volume or even a high volume break away gap-down may be on deck.
Lookit how far traditional TA went from late JUN into JUL.
Lookit how far traditional TA went from OCT into NOV.
These are strange times.

Lettuce see how this turns out.
blog comments powered by Disqus