Native American Energy Group Inc. (fka NAGP)

[surfkast]

The candlestick patterns seem to be holding true. We need a gap up or a white candlestick after todays Umbrella.



UMBRELLA

Type: Reversal
Relevance: Indecision
Prior Trend: N/A
Reliability: Medium
Confirmation: N/A
No. of Sticks: 1



Definition:

An Umbrella is a type of a doji characterized with no upper shadow but a long lower shadow. The long lower shadow shows the evidence for buying pressure, but the position of low price indicates that plenty of sellers still are around. Umbrella is interpreted as a reversal pattern.

Recognition Criteria:

1. The real body is either a horizontal line or it is significantly small (its length is not more than few ticks).
2. There is no upper shadow.
3. However the lower shadow is long.

Explanation:
Umbrella indicates that sellers mostly dominated trading during the day and they were able to drive the prices lower during the day. However; buyers resurfaced at the end of the day and they successfully pushed prices back to the opening level and to the day high.

Important Factors:

Umbrella has the potential to signal a bullish reversal at the bottom if it appears after a long downtrend, long black candlestick or if it is seen at a visible support level. Likewise; umbrella may signal a bearish reversal at the top if it appears after a long uptrend, a long white candlestick or if it is seen at a visible resistance level. Bearish or bullish confirmation is required in both situations.