Sunday, April 23, 2006
Bearish Dark Cloud Cover
This pattern signals a trend...
Reversal
How to identify...
1. 1st day is a long white day.
2. 2nd day is a black day which opens above the 1st day's high.
3. 2nd day closes within the 1st day, but below the midpoint.
Psychology...
A long white candlestick is formed on the 1st day and a gap up is created on the 2nd day. This is encouraging to the bulls. However, the 2nd day closes below the midpoint of the 1st day. Longs quickly question their strategy.
http://www.hotcandlestick.com/directory/Bearish%20Dark%20Cloud%20Cover.htm
Reversal
How to identify...
1. 1st day is a long white day.
2. 2nd day is a black day which opens above the 1st day's high.
3. 2nd day closes within the 1st day, but below the midpoint.
Psychology...
A long white candlestick is formed on the 1st day and a gap up is created on the 2nd day. This is encouraging to the bulls. However, the 2nd day closes below the midpoint of the 1st day. Longs quickly question their strategy.
http://www.hotcandlestick.com/directory/Bearish%20Dark%20Cloud%20Cover.htm
# posted by Debbie Lee : 6:35 PM
