Monday, January 5, 2009

Harami Cross?

By TD Ameritrade

With the S&P open and close less than 2 points away, we got a doji on the daily. Combined with the white candlestick from yesterday could be viewed as a Harami Cross. This usually signals a trend reversal. This pattern is far from perfect however because the prior candle is not that long and the uptrend could be viewed as simply the past three trading days. I look at this a possible turning point from the rally that started from the November lows. I would look for selling pressure to confirm this formation.

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