The benefit of the 10 minute chart on days like this allow candlestick investors to see much more clearly when after hard selling, when the Bulls are starting to step back in. Yesterday’s bullish Harami in the indexes obviously were not confirmed with a gap down in Today’s trading. That implies there is going to be more downside if the indexes close near the low end of their trading range. But an important bullish indication would be if the indexes close above where they opened Today. This may not necessarily mean the markets were trading higher but it would indicate a bullish Harami followed by a hammer signal in the oversold area. Also the measurement of wave three of a bearishJ-hook pattern may be getting close to the same magnitude as wave one. The 10 minute chart will be a very vital trading tool Today.
October 26th Daily Market Comments
The benefit of the 10 minute chart on days like this allow candlestick investors to see much more clearly when after hard selling, when the Bulls are starting to step back in. Yesterday’s bullish Harami in the indexes obviously were not confirmed with a gap down in Today’s trading. That implies there is going to be more downside if the indexes close near the low end of their trading range. But an important bullish indication would be if the indexes close above where they opened Today. This may not necessarily mean the markets were trading higher but it would indicate a bullish Harami followed by a hammer signal in the oversold area. Also the measurement of wave three of a bearish J-hook pattern may be getting close to the same magnitude as wave one. The 10 minute chart will be a very vital trading tool Today.