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Friday, January 25, 2008 4:35:08 PM
Today may have seemed like an uneventful day, but IMO thats far from what it indicates.
The stock closed with an Inverted Umbrella, which is signified by a long upper wick, but lacking a lower wick. This long upper wick indicates that there is still selling pressure, however there is also plenty of buying pressure also.
The Inverted Umbrella indicates indecision between the Bears and the Bulls, which is even more significant because the stock has been on a long decline and bounced off support twice. Seeing this after a downtrend is usually a trend reversal indicator with Medium to High reliability.
Our run the other day to .0150 tends to further support how ready this thing is to move, but we still have some selling pressure thats stalled each attempt at an full-fledged reversal.
Here's American Bulls explanation on the Inverted Umbrella
INVERTED UMBRELLA
Type: Reversal
Relevance: Indecision
Prior Trend: N/A
Reliability: Medium
Confirmation: N/A
No. of Sticks: 1
Definition:
An Inverted Umbrella is characterized by having no lower shadow and but a long upper shadow. The long upper shadow shows the evidence for selling pressure, but the position of high price indicates that plenty of buyers still are around. Inverted Umbrella is a reversal pattern.
Recognition Criteria:
1. The real body of the Inverted Umbrella is either a horizontal line or it is significantly small (its length is not more than a few ticks).
2. There is no lower shadow.
3. However the upper shadow is long.
Explanation:
Inverted Umbrella indicates that buyers dominated the trading and they were able to drive the prices higher during the day. However, sellers resurfaced by the end of the day and pushed prices back to the opening price level and to the day’s low.
Important Factors:
The Inverted Umbrella has the potential to point out evidence for buying pressure and indicate a potential bullish reversal if it appears after a long downtrend, long black candlestick or if it is seen at a visible support level. Likewise it may show a failed rally and indicate a potential bearish reversal if it appears after a long uptrend, long white candlestick or if it is seen at a visible resistance level. Bearish or bullish confirmation is required in both situations.
The stock closed with an Inverted Umbrella, which is signified by a long upper wick, but lacking a lower wick. This long upper wick indicates that there is still selling pressure, however there is also plenty of buying pressure also.
The Inverted Umbrella indicates indecision between the Bears and the Bulls, which is even more significant because the stock has been on a long decline and bounced off support twice. Seeing this after a downtrend is usually a trend reversal indicator with Medium to High reliability.
Our run the other day to .0150 tends to further support how ready this thing is to move, but we still have some selling pressure thats stalled each attempt at an full-fledged reversal.
Here's American Bulls explanation on the Inverted Umbrella
INVERTED UMBRELLA
Type: Reversal
Relevance: Indecision
Prior Trend: N/A
Reliability: Medium
Confirmation: N/A
No. of Sticks: 1
Definition:
An Inverted Umbrella is characterized by having no lower shadow and but a long upper shadow. The long upper shadow shows the evidence for selling pressure, but the position of high price indicates that plenty of buyers still are around. Inverted Umbrella is a reversal pattern.
Recognition Criteria:
1. The real body of the Inverted Umbrella is either a horizontal line or it is significantly small (its length is not more than a few ticks).
2. There is no lower shadow.
3. However the upper shadow is long.
Explanation:
Inverted Umbrella indicates that buyers dominated the trading and they were able to drive the prices higher during the day. However, sellers resurfaced by the end of the day and pushed prices back to the opening price level and to the day’s low.
Important Factors:
The Inverted Umbrella has the potential to point out evidence for buying pressure and indicate a potential bullish reversal if it appears after a long downtrend, long black candlestick or if it is seen at a visible support level. Likewise it may show a failed rally and indicate a potential bearish reversal if it appears after a long uptrend, long white candlestick or if it is seen at a visible resistance level. Bearish or bullish confirmation is required in both situations.
Top Gun Trading Rocks!!!
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