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Old 08-27-2007, 05:09 PM
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Re: DJIA Candles

James,
Let's look at today's candle on the DIA...




Some things we need to consider here:

1) Really low volume. How convinced are you that the bears had this or that the bulls took the day off?

2) We have a bearish shooting star in candlestick terms, near the SMA. Could be forming a classic pullback.

3) Assuming we were long on the hammer, do we exit the hammer? Do we initiate a new short?

Those are the questions any candlestick trader would need to answer here. I personally would consider exiting my long if the low of the shooting star was taken out tomorrow. I can't tell on stockcharts the exact price levels here. I need to see about getting EOD data into Multicharts as that would make things a lot easier.
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