Monday, November 16, 2009
Contrary buy signal forming
We noted last Thursday's Climax High signal, and that new highs were unlikely, "at least for the moment". This last part appears to be coming true this morning - as the market is breaking to a new high - it's always good to leave yourself some wiggle room when prognosticating the market!
It's characteristic of a bull trend: The Climax Highs can lead to just a temporary bout of selling on the way up, leading to a down day or two, but the things begin their relentless climb upward again. When the high of the signal gets taken out that becomes a contrary buy signal.
Here's a chart of the dow jones industrials to illustrate. Climax High signals are marked in red.
It's characteristic of a bull trend: The Climax Highs can lead to just a temporary bout of selling on the way up, leading to a down day or two, but the things begin their relentless climb upward again. When the high of the signal gets taken out that becomes a contrary buy signal.
Here's a chart of the dow jones industrials to illustrate. Climax High signals are marked in red.
// posted by gigascanner @ 7:32 AM 
Subscribe to Posts [Atom]
