"A man is not finished when he is defeated. He is finished when he quits."

Monday, August 31, 2009

What's Familiar

In the What's Familiar theme I have been on for a week or so, I present FSLR from last Friday, Aug 21st.
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The chart on the left is clean for comparison. The chart on the right shows some common signals I am looking for to further my understanding of high-ADR stock behavior. The bold white horizontal lines are the reversal points of the major trends of the day.
First, I look for the big momo candles which end at the high or low of the candle as an indicator of reversal. The white arrows are two examples of this... further, each reversal was accompanied by a gap-up.
Second, precursors to break up or break down: The magenta colored lines with a white "X" (also the two white lines pointing to 11:05&11:10; I forgot to change the color to magenta) in the chart indicate a doji, a hammer, or a wide price range candle with a relatively small open/close range.
Third, my old favorite, the high volume spike and my new favorite, the low-volume indicator. These are marked by the thin white lines dropping down to the corresponding volume level (some of which are marked in the volume area by the white "X".
As I look at the chart now, I see more of these signals which I did not mark.
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I'm closing this down and not trading today. The weather is fine and I am going to wax the Harley! Then, it is "Downeast" Maine and hopefully Canada!
Best to you all for a good week!