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Message: TA Today (Candlestick)

TA Today (Candlestick)

posted on Mar 04, 2009 04:56PM

http://www.americanbulls.com/StockPa...







Explanation:

The market moves down in a downtrend. The first black real body reinforces this view. The next day the market opens lower via a gap. Everything now goes, as bears want it. However suddenly the market surges toward the close, leading the prices to close sharply above the previous day close. Now the bears are losing their confidence and reevaluating their short positions. The potential buyers start thinking that new lows may not hold and perhaps it is time to take long positions.



(Based on the anemic volume below .18 of the past few days, tell us something we don't know)




BULLISH PIERCING LINE

Type: Reversal
Relevance: Bullish
Prior Trend: Bearish
Reliability: High
Confirmation: Suggested
No. of Sticks: 2

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