Unique Stock Market Trading Tool Uses Two Long Time Trusted Indicators To Predict Bear Market Bottom
Twin Falls, Idaho (PRWEB) December 13, 2008
Candlestick patterns are highly recognized as the “preferred” method for looking at price action on a stock, forex chart, or futures chart.
It’s true that Japanese candlesticks provide the user with an easily recognizable way to immediately identify the current state of price. Bullish or bearish, the candlestick patterns tell us immediately the current state of price action.
Additionally Bollinger bands are a prized tool among traders today because Bollinger bands will tell with incredible accuracy when and where price will likely reverse, if only for the short term.
The question is what are these 2 powerful tools telling us when viewed together? The answer is no less than surprising and could actually be considered rather amazing.
With the markets currently making short-term higher highs and lows, it may appear on the surface that we are pulling up and out of our bear market correction.
On Nov. 21st. and Dec. 05, respectively the Dow Jones Industrial Average made 2 swing lows. Price then made a higher high then the previous swing high on 12/8 which was actually the next session.
If price fails to penetrate the swing low on Dec.05 the question then becomes was our market bottom on Nov.21 st., or is this just an overall correction to the upside?
According to Mark Deaton of http://www.candlestickgenius.com and http://www.bollingerbandgenius.com, the answer is in the Bollinger bands.
When asked about the power of these 2 technical analysis tools together Mark says, “Candlestick patterns and Bollinger bands together will beat any technical indicator any day of the week!”
He says that although he wouldn’t bet any money at this point about whether or not we’ve hit a bear market bottom he will definitely bet on it in late December.
According to Mark, “A look at candlestick patterns in conjunction with Bollinger bands gives you amazing perspective on price and time. The way the bands react to approaching price action tells you exactly what will happen next, this is why I won’t be placing any bets until late December.”
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