Posted by hurricanemalta on 18th of May 2010 at 05:14 am
I wonder if anyone has a thought on this issue.If you look at a
daily SPX chart you will notice the recent tails on the
candles.Particularly yesterday and the dragonfly doji.These daily
candles seem to show bulls coming in to buy up the market leaving
the tails behind.I guess my question to you other guys is this.If
you look at the recent candle(particularly yesterdays ) then it is
bullish BUT if you think about the wave structure then as this is a
potential wave 2 retrace then it is perfectly understandable and so
the bullish implications seem to be negated as the structure would
say down after the retrace into 3 of 3.Any thoughts on how to deal
with conflicting candle signals and wave patterns.
Posted by panaspor on 18th of May 2010 at 10:50 am
It is confusing. I've really only been in to analysis for
about a year. I am now beginning to think that sticks and
patterns are important but not important some other times.
Today on the spx daily, the 20dma crossed below the 50dma. I
think this is more important than any dragonfly
doji. This will more than likely set up the right
shoulder and we could test the Feb lows. Just my opinion.
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Candle tails/wicks..how to consider them
Posted by hurricanemalta on 18th of May 2010 at 05:14 am
I wonder if anyone has a thought on this issue.If you look at a daily SPX chart you will notice the recent tails on the candles.Particularly yesterday and the dragonfly doji.These daily candles seem to show bulls coming in to buy up the market leaving the tails behind.I guess my question to you other guys is this.If you look at the recent candle(particularly yesterdays ) then it is bullish BUT if you think about the wave structure then as this is a potential wave 2 retrace then it is perfectly understandable and so the bullish implications seem to be negated as the structure would say down after the retrace into 3 of 3.Any thoughts on how to deal with conflicting candle signals and wave patterns.
Agreed
Posted by panaspor on 18th of May 2010 at 10:50 am
It is confusing. I've really only been in to analysis for about a year. I am now beginning to think that sticks and patterns are important but not important some other times. Today on the spx daily, the 20dma crossed below the 50dma. I think this is more important than any dragonfly doji. This will more than likely set up the right shoulder and we could test the Feb lows. Just my opinion.