Friday is the day to look at your long term weekly candle development. Today is the day they finalize the configuration of the candle that will lead us into the next week
What can we look at. Well we can see the weekly trading channel or range. What we can see is the footprint we could have played in. We can bounce that candle off a daily mid and daily candle chart.
That will show how that candle progressed. What we learn is by looking at average candle sizes we can see somewhat what we can expect Ford to move in a day. Barring any market extremes or news we get a feel of the daily ebb and flow up and down. We also get a feel for trends short, mid and long.
Maybe Ford is going to that 18 to 23 channel... maybe it is going back to the 10 to 13 or 14 channel but the charts let us know it will take more than 2 or 6 weeks to get anywhere. Knowing you have time frames that are not immediate you can plan a better trade.
Of course there is plenty of room for the buy and hold crowd.
But MHO for myself is the markets are not stable. They are not trending coming off a bottom like a flash crash or a recession. they are coming from a market that just keeps trying to go up past its time.
So I now am in caution mode and plan even more to protect my principal.
Gl all and have a great weekend.
BTW this applies to FCX HEP AA S F HTM FTR SIRI FITB or what ever stock is in your favorites list.
“Those who don't know history are destined to repeat it.”
Edmund Burke (British Statesman and Philosopher, 1729-1797
"Those that do know history can choose to repeat it."
frankie_fillet 2011
