If you are like me, before candlesticks came along, I wanted to start buying or covering short positions on the first signs of buying when the markets were well in the oversold area. However, the combination of signals and confirming indicators, such as stochastics, allowed me to sit more patiently waiting for everything to align. Yesterday’s buying, in the oversold area, didn’t have the full confirmation of the markets being well into the oversold area. Remaining short or not buying was based upon the simple T line rule, until there is a buy signal and a close above the T line, anticipate a downtrend remains in progress.
October 30th Daily Market Comments
If you are like me, before candlesticks came along, I wanted to start buying or covering short positions on the first signs of buying when the markets were well in the oversold area. However, the combination of signals and confirming indicators, such as stochastics, allowed me to sit more patiently waiting for everything to align. Yesterday’s buying, in the oversold area, didn’t have the full confirmation of the markets being well into the oversold area. Remaining short or not buying was based upon the simple T line rule, until there is a buy signal and a close above the T line, anticipate a downtrend remains in progress.