The Doji rule – prices will move in the direction of how they open after a Doji. Today’s positive trading was a Doji yesterday, followed by a gap up in price today in the Dow, the NASDAQ and the S&P 500. This is putting the trading back into the sideways channel. The best friend type signal created by the Doji/gap up should produce a reasonably strong uptrend, provided the trading stays near the top of the trading range today. However, the nature of the trend has been whipsawing up and down for the past four weeks. Until there is a definite change of investor sentiment, a breakout of the sideways market channel, assume the indecisive nature of the market remains.
October 14th Daily Market Comments
The Doji rule – prices will move in the direction of how they open after a Doji. Today’s positive trading was a Doji yesterday, followed by a gap up in price today in the Dow, the NASDAQ and the S&P 500. This is putting the trading back into the sideways channel. The best friend type signal created by the Doji/gap up should produce a reasonably strong uptrend, provided the trading stays near the top of the trading range today. However, the nature of the trend has been whipsawing up and down for the past four weeks. Until there is a definite change of investor sentiment, a breakout of the sideways market channel, assume the indecisive nature of the market remains.