I haven't done this in a while so it seemed like a good time. I had no time to get in the markets today but the charts were interesting. On the screen are SPY and FAZ...
As I have done in the past, the short, angled white lines pointing to a candle indicate areas where there were dojis, near dojis, candles ending their 5-minute timeframe at the top or bottom, or candles with a tight open to close price range in relation to a much larger high/low price range. Further, the long white lines that reach down to the volume chart correspond to volume spikes.
All of these portend reversals of direction; some large and some small. These indicators continue to be above-average in reliability and can provide nice exit signals. Or, with caution, can generate entry signals.
The fact that these changes of direction occur consistently is the reason for the What's Familiar moniker.
Lots of day job and lots of critical construction project tasks this week and coming week-end so trading will be severely limited if it happens at all. Sure do miss it when I can't participate.
