While there has been much commentary about the US Dollar Index hitting 100.00, we note two things from a technical perspective – the first is a shooting star pattern on the candlestick charts and the second is that the daily RSI has yet to confirm the recent high.
This happens when price makes a new high, but the oscillator does not – it is otherwise known as bearish divergence.
It generally denotes a loss of upside momentum.
The shooting star however is a bit more serious this is a bearish reversal candlestick pattern that typically occurs at the top of uptrends.
I would suggest tightening the stops in this one as I suspect that we are going to see some profit taking….
A shooting star is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow, generally defined as at least twice the length of the real body.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
This happens when price makes a new high, but the oscillator does not – it is otherwise known as bearish divergence.
It generally denotes a loss of upside momentum.
The shooting star however is a bit more serious this is a bearish reversal candlestick pattern that typically occurs at the top of uptrends.
I would suggest tightening the stops in this one as I suspect that we are going to see some profit taking….
A shooting star is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow, generally defined as at least twice the length of the real body.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
www.technicalanalysts.com
www.technicalanalysts.com