Categories
TA

Japanese Candlesticks : Reversal and Confirmation

There’s a discussion on InvestIdeas forum on Japanese candlesticks reversal patterns.

The discussion touches briefly on possible SPX reversal as it is near 1100 and a doji is sighted.

Here, I am attaching a chart of NOL highlighting how 2 reversal signals are sighted but they do not necessary confirm the reversal.

In the first case, after the Umbrella line is sighted, the confirmation is found on the 2nd day.

If you look at the second case, the day after the doji is sighted, it actually go up. So, in this case, it make the doji an invalid reversal signal.

Hope my candlestick reading is correct.

2009Nov-NOL-800x600

By iam802

Trend trading with Ichimoku