3 replies to this topic

[johngeorge]

The Long Legged Doji has long upper and lower shadows
with the open and the close very close or the same.
This pattern reflects the indecision of buyers and sellers.
The low of the day is very low and at the bottom of the trend.

Note: The accuracy of the description above is dependent
upon how close the recognized pattern resembles the ideal
pattern.

Excerpted with permission from Candlestick Charting Explained by Greg Morris.



http://stockcharts.c...1148&r=8968.png

[ogm]

Look at the monthly though. So far the monthly candle indicates the loss of momentum. Abandoned baby, or something like that. Yes the month only started, but so far what it looks like. Considering monthly RSI is very high, the candle says the trend may be slowing here. Daily MACD and RSI also have a negative divergence that confirms the loss of momentum. Overall price structure is a pretty common setup for a sell off. Take a look at the SPX or DOW July chart for example. Hesitation/Consolidatioon, spike to new high with falling momentum, sharp decline.

Edited by ogm, 04 November 2007 - 07:42 PM.

[johngeorge]

Look at the monthly though. So far the monthly candle indicates the loss of momentum. Abandoned baby, or something like that. Yes the month only started, but so far what it looks like. Considering monthly RSI is very high, the candle says the trend may be slowing here.

Daily MACD and RSI also have a negative divergence that confirms the loss of momentum.


Overall price structure is a pretty common setup for a sell off.

Take a look at the SPX or DOW July chart for example. Hesitation/Consolidatioon, spike to new high with falling momentum, sharp decline.

ogm
Agree fully with your assessment. I would have done better to add that the candlestick formation ON A DAILY CHART indicated SHORT TERM bullish, ie, 1-4 days.
Best to you.

[vitaminm]

ewh current trend to 27