Tuesday, July 29, 2008

NicB Method II














Both of these candles bounced away from the same high, that instantly tells us that the bulls have hit a barrier and that they do not have the strength to push any further. The fact that they cannot make a new high is very telling; it suggests that they are losing strength rapidly. So this supports the idea of a bearish reversal an seeing something like this should give you more confidence when entering a reversal.

Oh and that 215.85 line is now a scalp line!


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