QQQ (12 September)

QQQ ($586.66) is pressing against the upper +/-3% envelope band (~$591)

• Overbought relative to the 20d SMA, often an area where price pauses or pulls back
  
• The MA at $574.33 acts as mean reversion support
  
• The lower envelope ($557) would be the deeper support if selling picks up
  
• Fade moves at the outer bands (sell near +3%, buy near -3%) or trade trend continuation if price closes & holds above the +3% envelope
  

Since early September, each pullback bottomed higher, confirming an uptrend continuation

• Last few candles are mostly green with higher closes, showing buyers are in control
  
• Current candle is a strong green pushing into the upper envelope band (+3%), which shows momentum & demand
  
• Recent candles have short upper wicks, meaning buyers closed near the highs, which is bullish
  
• QQQ broke out from a sideways consolidation (around $570–$580) & is now trending higher
  
• No bearish reversal signals - no shooting stars, bearish engulfings, or dojis near the highs
  
• If QQQ closes strong above the envelope, momentum breakout, bullish continuation
  

Price is extended into the +3% envelope, which historically acts as resistance or a mean reversion point

• If next week’s candles print a long upper wick (rejection) or a red engulfing candle, that could signal short-term exhaustion
  
• Watch for reversal signals at this extended level; otherwise, trend is intact to the upside
  
• If QQQ prints a shooting star or bearish engulfing, likely short-term pullback toward the moving average ($574)
  

If these appear, it means the uptrend is likely to continue higher,
1. Bullish Marubozu (long green candle with no or tiny wicks

• Shows buyers in full control, often signals strong follow-through
  

2. Bullish Engulfing

• A green candle that completely engulfs the body of the previous red candle
  
• Strong buying reversal signal after a dip
  

3. Three White Soldiers

• Three consecutive green candles, each opening higher than the last
  
• Very strong trend continuation signal
  

4. Gap up & hold

• Next day opens above the prior high & holds
  
• Momentum traders often chase this pattern
  

If these appear near the envelope top, caution is warranted,
1. Shooting Star

• Small body, long upper wick, closes near the low
  
• Shows buyers pushed up, but sellers took back control
  

2. Bearish Engulfing

• A big red candle that fully engulfs the prior green candle
  
• Signals shift from buyers to sellers
  

3. Evening Star

• Three candles strong green - indecision (doji/small body) - strong red
  
• Very reliable top-reversal signal
  

4. Gravestone Doji

• Open, high & close all at the same level (long upper wick)
  
• Clear rejection of higher prices