A key reversal occurs when the daily bar in this case takes a new high but closes below the day before's low. This is a technician term for that the top of the trend most likely has been seen unless next days high gets above 61,8 percent of today's high minus low.
Short traders use to watch this second day and sell if they see it will not get over 61.8 percent.
Thursday's high was 12.298 minus low 11.963 is 335 x 61,8% = 207 plus 11.963 =
12.170. According to this theory if Dow does not get above 12.170 Friday the uptrend is over.
Short traders use to watch this second day and sell if they see it will not get over 61.8 percent.
Thursday's high was 12.298 minus low 11.963 is 335 x 61,8% = 207 plus 11.963 =
12.170. According to this theory if Dow does not get above 12.170 Friday the uptrend is over.
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