Listen well to words from the wise,
For they carry truths beyond disguise.
Their lessons learned from times gone by,
Will guide you towards the sky.
In trading, a shooting star is a bearish candlestick pattern that signals a potential reversal in an uptrend. It has a long upper wick and a small body, indicating that the market opened and rallied, but then sellers stepped in and pushed the price back down.
A bearish engulfing candle is a bearish reversal pattern in technical analysis. It forms when a small bullish candle is followed by a larger bearish candle that completely engulfs or "eats up" the previous candle's body. This pattern suggests that bears have taken control of the market and a potential downtrend is beginning.
We have seen both of these. Friday was pretty darn bullish and yesterday formed a shooting star. I indicated that we'd be seeing a reversal soon and I was literally laughed at. SPY was a -1.53% day today.
In technical analysis, it is possible to identify situations where a potential downtrend is likely, but it's important to keep in mind that markets rarely move in a straight line. Therefore, it's not uncommon to see a bounce or a period of consolidation before the downtrend resumes. You should monitor market conditions and take a cautious approach when making decisions during periods of uncertainty. After a bearish engulfing day like today that filled the gap from Friday morning, you should be cautious. Watch the yellow wave here on the daily and if you have the indicator, look at the 4h timeframe.
Volume indicator (at the top) also indicates that there was very few buying pressure and mostly was selling pressure today. More than we've seen since January 18 and December 15. It looks more like it did on January 18, to be fair. I'll be buying this dip, but being patient. We'll have time to buy.
For they carry truths beyond disguise.
Their lessons learned from times gone by,
Will guide you towards the sky.
In trading, a shooting star is a bearish candlestick pattern that signals a potential reversal in an uptrend. It has a long upper wick and a small body, indicating that the market opened and rallied, but then sellers stepped in and pushed the price back down.
A bearish engulfing candle is a bearish reversal pattern in technical analysis. It forms when a small bullish candle is followed by a larger bearish candle that completely engulfs or "eats up" the previous candle's body. This pattern suggests that bears have taken control of the market and a potential downtrend is beginning.
We have seen both of these. Friday was pretty darn bullish and yesterday formed a shooting star. I indicated that we'd be seeing a reversal soon and I was literally laughed at. SPY was a -1.53% day today.
In technical analysis, it is possible to identify situations where a potential downtrend is likely, but it's important to keep in mind that markets rarely move in a straight line. Therefore, it's not uncommon to see a bounce or a period of consolidation before the downtrend resumes. You should monitor market conditions and take a cautious approach when making decisions during periods of uncertainty. After a bearish engulfing day like today that filled the gap from Friday morning, you should be cautious. Watch the yellow wave here on the daily and if you have the indicator, look at the 4h timeframe.
Volume indicator (at the top) also indicates that there was very few buying pressure and mostly was selling pressure today. More than we've seen since January 18 and December 15. It looks more like it did on January 18, to be fair. I'll be buying this dip, but being patient. We'll have time to buy.