Heikin-Ashi candles provide a simple method to incorporate averaging into price action analysis by making candlesticks themselves averaged. This causes candles to have a smoothened and continuous look making them easier for some to visualize trends.
Heiken Ashi candlesticks do not show a shadow in the OPPOSITE direction of the trend like typical Japanese candlesticks.
When there is no lower shadow/tail on a green candle, this means you’re in a uptrend.
Candlesticks that have no shadow/tail or an upper wick on one end are also called “shaven candles“.
A candle shaved on both ends is a Marubozu candle in typical Japanese candle use. A long green candle in typical Japanese candle use is very bullish, and by definition, both ends are shaven. Vice versa for a red candle that is shaven on both ends is often very bearish.
On this chart the Heiken Ashi candles are still bearish as there is only red candles with no upper wick. So a green Heiken-Ashi candle with a long upper wick and a shaven bottom is considered bullish.
These candles differ as a typical green candle with a long top wick and a shaven bottom, can be bearish at the top using typical Japanese candles as a bottom shadow is likely to form eventually. The opposite is true of a Heiden Ashi green candle with a long top wick and no bottom shadow/tail which is often bullish even at the top.
With Heikin Ashi candles, we want to see shaved bottoms that are green and shaved heads that are red if we’re looking for trend strength.
I was surprised how low TREX has gone when I looked at this chart and using Heiken-Ashi candles, this security is still bearish. Short percent is 5.43% Mkt cap is 10 Billion. PE is 41.36 which is on the high side for this sector.
Earnings are estimated to be on 2-21 or 2-22 as I see conflicting dates and is AMC. Earnings were growing substantially quarter over quarter, but the market has not been kind to high PE stocks as of late. I am not saying this a PE ratio out the roof, but it is on the high side for this sector.
TREX is Oversold on daily RSI, and is close to oversold on weekly RSI. TREX is not oversold on monthly
No recommendation.
Trex Company, Inc. manufactures and distributes wood and plastic composite products, and related accessories primarily for residential decking, and railing applications in the United States. It offers Trex Transcend, Trex Select, and Trex Enhance protective shells for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening systems; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products used in Trex decking products and other decking materials; Trex Select Railing for simple clean finished look; Trex Enhance railing system; and Trex Signature aluminum railing for contemporary look. In addition, it offers Trex Seclusions fencing product, including structural posts, bottom and top rails, pickets, and decorative post caps; and Trex Elevations, a steel deck framing system. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-plastic composite decking; Trex SpiralStairs and structural steel posts; Trex Outdoor Kitchens, Cabinetry, and Storage; and Trex Outdoor Fire & Water products. Additionally, it offers architectural and aluminum railing systems, and staging equipment and accessories. The company sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe’s stores, as well as through its direct sales staff, independent sales representatives, and bidding on projects. The company was founded in 1996 and is headquartered in Winchester, Virginia.
Heiken Ashi candlesticks do not show a shadow in the OPPOSITE direction of the trend like typical Japanese candlesticks.
When there is no lower shadow/tail on a green candle, this means you’re in a uptrend.
Candlesticks that have no shadow/tail or an upper wick on one end are also called “shaven candles“.
A candle shaved on both ends is a Marubozu candle in typical Japanese candle use. A long green candle in typical Japanese candle use is very bullish, and by definition, both ends are shaven. Vice versa for a red candle that is shaven on both ends is often very bearish.
On this chart the Heiken Ashi candles are still bearish as there is only red candles with no upper wick. So a green Heiken-Ashi candle with a long upper wick and a shaven bottom is considered bullish.
These candles differ as a typical green candle with a long top wick and a shaven bottom, can be bearish at the top using typical Japanese candles as a bottom shadow is likely to form eventually. The opposite is true of a Heiden Ashi green candle with a long top wick and no bottom shadow/tail which is often bullish even at the top.
With Heikin Ashi candles, we want to see shaved bottoms that are green and shaved heads that are red if we’re looking for trend strength.
I was surprised how low TREX has gone when I looked at this chart and using Heiken-Ashi candles, this security is still bearish. Short percent is 5.43% Mkt cap is 10 Billion. PE is 41.36 which is on the high side for this sector.
Earnings are estimated to be on 2-21 or 2-22 as I see conflicting dates and is AMC. Earnings were growing substantially quarter over quarter, but the market has not been kind to high PE stocks as of late. I am not saying this a PE ratio out the roof, but it is on the high side for this sector.
TREX is Oversold on daily RSI, and is close to oversold on weekly RSI. TREX is not oversold on monthly
No recommendation.
Trex Company, Inc. manufactures and distributes wood and plastic composite products, and related accessories primarily for residential decking, and railing applications in the United States. It offers Trex Transcend, Trex Select, and Trex Enhance protective shells for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening systems; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products used in Trex decking products and other decking materials; Trex Select Railing for simple clean finished look; Trex Enhance railing system; and Trex Signature aluminum railing for contemporary look. In addition, it offers Trex Seclusions fencing product, including structural posts, bottom and top rails, pickets, and decorative post caps; and Trex Elevations, a steel deck framing system. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-plastic composite decking; Trex SpiralStairs and structural steel posts; Trex Outdoor Kitchens, Cabinetry, and Storage; and Trex Outdoor Fire & Water products. Additionally, it offers architectural and aluminum railing systems, and staging equipment and accessories. The company sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe’s stores, as well as through its direct sales staff, independent sales representatives, and bidding on projects. The company was founded in 1996 and is headquartered in Winchester, Virginia.
Comment:
Wow. I sure missed this one being at a take off point!
Never bend your rules to accommodate your gut (o: