7pasos

Shooting star after 20 sesions of new highs

358 0 1
The over bought condition in the S&P500             is really extreme, few times the market can get 20 sessions with out more than 1 session of rest pushing for new highs. The father of candles in western, Nison, states that more than 8 is over bought so...
Afther all this, a shooting star reversal appears, and very noticeable, but have 2 main problems:
1) the short reversal in an up trend is more a sing to take profits than to open a new trade
2) the lack of other signals to anunce the start of a new trend, like a divergences, makes the sell in this time just for brave hearts (at least).
So even when we think that this could lead a down side movement the odds are greatly for just a pullback, most probable only to retrace the 38.2% of the last upside movement.
If you consider this as a target, for the pullback, the reversal will need to retrace (move to the upside) at least to the top of the body of our shooting star .
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out