Reality Check (06 Sep 2006)
Today’s NDX chart as revealed thru the Qs:
The Hanging Man is a bearish reversal pattern that can also mark a top or resistance level. Forming after an advance, a Hanging Man signals that selling pressure is starting to increase. The low of the long lower shadow confirms that sellers pushed prices lower during the session. Even though the bulls regained their footing and drove prices higher by the finish, the appearance of selling pressure raises the yellow flag. As with the Hammer, a Hanging Man requires bearish confirmation before action. Such confirmation can come as a gap down or long black candlestick on heavy volume. (from stockcharts.com)
That’s what I get for hurrying and not paying attention. Check out the chart of the Qs I posted yesterday. Look familiar? The 17th-century rice traders are right again. And I have no excuse at all. I’ve been familiar with candlestick formations since the early 1990s. And yes, I own the book.
Jeez.