Even on technicals, they’re not right all the time. If you’re just looking for a head and shoulders, you’re basically gambling. It causes a mini panic (people thought $71 was a good value but someone with a ton of cash is selling at $71, so price stagnates, and day traders peel the position) the price eventually drops, rally’s a bit, more institutional share are sold, and then the stock price drops off after a ton of people exit. People are buying under the presumption (stupid people like you and I) at $71 expecting the price to go up, and someone with a lot more money who’s much smarter than us saying “hell, $71 a share is a great deal” it’s confusion in the market.Įventually retail traders keep buying in, and institutional traders dump their shares. 1 The Japanese candlestick chart analysis, so called because the lines resemble candlesticks, has been refined by generations of use in the Far East. That’s because people are UNLOADING shares at say, $71 dollars. It’s the fact that it keeps reaching a particular point and there’s a sell off that makes it a bearish signal. Download for offline reading, highlight, bookmark or take notes while you read Japanese Candlestick Charting Techniques: A Contemporary Guide to the. Read this book using Google Play Books app on your PC, android, iOS devices. Head and shoulders - at the halfway point it’s a bullish signal. Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East, Second Edition - Ebook written by Steve Nison. You need to understand the underlaying reason for the price action.
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