![]() ![]() Unfilled Gap=Strength-ANOTHER unfilled gap….STRENGTH. ![]() This was a clue of a potential breakaway beginning. Unfilled Gap=Strength-In a weak or chop market gaps fill. However, many other names held up well this day and provided clues as to what was to come. Up until this point in the rally the majority of the gains were being driven by Big Cap Tech. Light volume shakeout to the 10 day moving average. The bears needed to do much more to overcome the foundation the bulls had already set. We remained above the 5 day moving average though. I sold out some of my positions out of caution. In addition to being a bullish counter-attack this was also a bullish engulfing showing signs of strong demand.ġ95 Min Change of Character - I wrote about this in my 3/15 substack if want to review it but below is a screenshot:įed Day Stress Test-The market sold hard the day of the Fed. However, bulls held the gap up day low and pushed the market all the way positive. This was an opportunity for the bears to distribute the market and put a lid on the rally attempt. After our first two clues, the market gapped down pretty substantially. This setup is not exactly how he describes it but is along the same lines. When the market proceeds to move in the direction of that gap it is a meaningful sign.īullish Counter-Attack Bar -On of Steve Bison’s book “Japanese Candlestick Charting Techniques” he goes over this pattern. I am a big believer that unfilled gaps are a sign people are caught off sides. ![]() Unfilled Gap =Strength-On day 2 we saw a gap higher that more or less held the morning low and showed strength all day. Most likely there was a combination of all three. This all occurred on heavy volume signifying that long traders were stopped out on the undercut, short traders were trapped, or new long traders stepped in. Additionally, the bar it undercut was the 3/2 bullish engulfing bar, that itself, was a minor 2B Reversal. This occurred right around the 200SMA and the 50SMA. But this is essentially and undercut of a previous low that is then recaptured. 2B Reversal -You can learn about this pattern in Victor Sperandeo’s book “Trader Vic II” among other valuable tools. ![]()
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