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Wednesday, February 05, 2014 7:07:31 PM
Why MDNT may make a long white candle tomorrow.
Well, the main reason is the candle that was formed today.
As you can see on the chart, I signaled with red arrows three candles very similar with today's candle, as you can see, before every one of these candles, there is at least another white candle, and in two of the cases, 3 white candles before, so this kind of candle signaled a top on three small runs.
As you can see, this time it was different, today's candle was made after a small drop, so it is signalizing a bottom.
Now let's talk about the candles formed the very next day after all these three candles that signaled a top. Right, a long red candle next to every one of these candles, so now if you look to the green arrow, pointing to today's candle, you can see why I am saying that tomorrow we can see a long white candle.
Also, the RSI is pointing up, bouncing off of the 30 line, and, this will contribute for a possible long white candle tomorrow.
Another curious thing I've detected, was some almost cyclical short time moves of the +DI line to the up side, followed by a small but prolonged pull back, but, as you can see, this last time, the line is not pointing so down like the previous times, and, it is right at the time to make another move to the up side.
So all this above lead me to conclude that tomorrow we will have a long white candle, possibly long enough to break the PAR SAR at .0141, however tomorrow the PAR SAR may be a little lower, at .0137 more or less.
Daily chart
Well, the main reason is the candle that was formed today.
As you can see on the chart, I signaled with red arrows three candles very similar with today's candle, as you can see, before every one of these candles, there is at least another white candle, and in two of the cases, 3 white candles before, so this kind of candle signaled a top on three small runs.
As you can see, this time it was different, today's candle was made after a small drop, so it is signalizing a bottom.
Now let's talk about the candles formed the very next day after all these three candles that signaled a top. Right, a long red candle next to every one of these candles, so now if you look to the green arrow, pointing to today's candle, you can see why I am saying that tomorrow we can see a long white candle.
Also, the RSI is pointing up, bouncing off of the 30 line, and, this will contribute for a possible long white candle tomorrow.
Another curious thing I've detected, was some almost cyclical short time moves of the +DI line to the up side, followed by a small but prolonged pull back, but, as you can see, this last time, the line is not pointing so down like the previous times, and, it is right at the time to make another move to the up side.
So all this above lead me to conclude that tomorrow we will have a long white candle, possibly long enough to break the PAR SAR at .0141, however tomorrow the PAR SAR may be a little lower, at .0137 more or less.
Daily chart
Cheers
Dr Pennystock
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