AI
Sunday, July 16, 2006 4:51:32 PM
FISV
Hi, Hack. There is a third possibility on the candle read here not even mentioned at candlestickshop, and IMO it is the correct one. Here is a close-up of that formation:
It cannot be an Harami because the second candle is not entirely within the real body of the first, in fact opens .06 below the close of the red candle.
The second candle has a small real body, whereas a Thrusting Pattern requires a longer real body, but a very similar pattern (differing only in degree) is the In-Neck Pattern, described by Nison as a small white candle closing slightly into the prior long red candle's real body. This is a pretty weak Bottom Reversal signal (weaker than a Piercing or Thrusting, but stronger than the On-Neck Pattern), especially in view of the fact that the white candle does not open below THE LOW of the previous red candle, but merely below its real body. This may simply be a hint of a reversal to come later, just as Doji in a downtrend are not as reliable as Doji in an uptrend, but merely hint at a possible change in trend.
JMO, BWDIK.
Newly
Hi, Hack. There is a third possibility on the candle read here not even mentioned at candlestickshop, and IMO it is the correct one. Here is a close-up of that formation:
It cannot be an Harami because the second candle is not entirely within the real body of the first, in fact opens .06 below the close of the red candle.
The second candle has a small real body, whereas a Thrusting Pattern requires a longer real body, but a very similar pattern (differing only in degree) is the In-Neck Pattern, described by Nison as a small white candle closing slightly into the prior long red candle's real body. This is a pretty weak Bottom Reversal signal (weaker than a Piercing or Thrusting, but stronger than the On-Neck Pattern), especially in view of the fact that the white candle does not open below THE LOW of the previous red candle, but merely below its real body. This may simply be a hint of a reversal to come later, just as Doji in a downtrend are not as reliable as Doji in an uptrend, but merely hint at a possible change in trend.
JMO, BWDIK.
Newly
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