DOW

Amo wrote: Hi Remo,

What would you look for to suggest there could be a change in trend rather than just a correction?

Thanks
Amo

P.S. Good call with the Marubozu

Hi Amo
My main Reason to say that it could be a sign of a trend reversal is mainly due to the fact that between April and October the markets likes to correct. If you look back a few years of the Dow you can see it likes to correct between these months.
The dows had a good move and it does need a correction to go higher as well. Corrections are healthy.

SirRichardBunson wrote: Hi Remo,

Just curious but after reading your Dow post this morning I could see that Afren was showing the same candlestick and sure enough it reached just above the target area and then fell so can I presume that the Marrowboozy play does apply to shares as well as the markets.

Cheers

SRB

Hi srb
Yes it applies to all shares as well.

Hi Remo,

What would you look for to suggest there could be a change in trend rather than just a correction?

Thanks
Amo

P.S. Good call with the Marubozu

Hi Remo,

Just curious but after reading your Dow post this morning I could see that Afren was showing the same candlestick and sure enough it reached just above the target area and then fell so can I presume that the Marrowboozy play does apply to shares as well as the markets.

Cheers

SRB

Just goes to show how many traders are aware of that pattern
3 points out..There's still a chance it could hit this level latter on during market hours.

Hit 14727 earlier almost bang on that 50% level.

remo wrote: Marubozu candlestick pattern on the dow. This is quite a rare pattern on the dow.
This shows that the bears are in charge and bigger falls maybe about to come.
Go away in april and come back in october may be true this year
A good entry based on this pattern is if the price comes half way up the marubozu(50%) in this case to 14731 then short with stops above preferably.
Caution on new longs as this could be the signal for a top.