It is called a negative engulfing line or bearish engulfing candlestick. A negative engulfing pattern is a red candlestick and it gobbled up the earlier bar. At the moment we're looking at a weekly chart so that is why it is so important.
The negative engulfing line sets a top about 2350 for now.
Why is this candlestick so meaningful?
To cut a long story short it's the similar thing that occurred in mid-April that forecast a 450 point fall off on the Nasdaq.
Let me be clear about it, last week was a dreadfully important week for stock traders. Looking on the weekly equity charts, you will see one of the most powerful Japanese candlestick lines. This one formation on the stock chart is our first signal that there possibly will be some big problems to come for the stock market.
In this new video take a look at this negative engulfing formation and how it can play out in the short and longer-term time frames.
0 comments:
Post a Comment