Discussion in 'Technical Analysis' started by Rickshaw Man, Jun 15, 2005.
what do you make of these last eight small body candles with long wicks on each end.
Daily chart candlestick analysis...just noise (no trade signals).
Therefore, if your trying to find some answers there...your going to need to look at a lower or higher chart interval to see if there's anything there for you to bite on.
You may also need to look at other key markets for answers to understand the price action (non-candlestick analysis) in the DJIA.
Several things and looks like DIA or GE related sideways trend , but reguardless of what market that is ;
1] sideways trends seems to have more of that and ;
2] its also more intraday buying/ selling more so than clean cylindrical candles
3]Makes sideways trends[or ranges] more tricky to enter /exit;
usually try to stay out of those.
First this look I think is because a Fibo is near.
And with a old trick the look of the total has a big change.
The market is not sure of direction net buyers and sellers or line market.
That's all there is to it.
Best strategy is to convergence trade until a solid break out is established.
I think it shows a good fight between bears and bulls, for a long time, so when it breaks, it should break good as either the bears or bulls give in.
It's not a fight ... it's a balance.
Price is trying to get out of range. Draw horizontal trendline at the top of long body green candle ( 11th bar from right ) and on bottom of a long body red candle ( 9th bar from right ). This will show you present range.
Daily cycle should be completed in about 9 candles, then you should see change in direction .
It could be a good spread trade if there is more volume in options.
OK. Price is testing the resistance from beggining of April and it's FAILING to take it out as evidenced by the long wicks (shadows) above that resistance. I would NEVER go long here. And actually, a short trade looks pretty good here.
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