Sunday, April 29, 2007

CandleTricks - II

When I first learned candlestick analysis I learned this nifty little trick that I want to share with you. It is an important tool to add to your tool box because it will help you make sense of nonsense.

First we have the monthly chart of the DIA over a long period of time.

Had you seen that cross over that I circled you would have put all of your money on this ETF and lived happily ever after. What cross over, you ask? Why, this one, I reply -

You see - you can combine 'sticks to make a new stick and now the cross over becomes clear as day.

Even though I had to combine three months worth of sticks to make the cross over what else would you call it? So you see - the current rally was signaled plain as day in February, March, and April of '03. And until we get a counter signal I think it will continue.

You won't get this on any other site on the 'net folks - no where else but here.

1 comment:

Anonymous said...

Looks like a Belt Hold times three.