A Bearish Harami formation appeared today on the S&P 500.
From Investopedia:
A bearish harami may be formed from a combination of a large white or black candlestick and a smaller white or black candlestick. The smaller the second candlestick, the more likely the reversal. It is thought to be a strong sign that a trend is ending when a large white candle stick is followed by a small black candlestick.
Normally I would not put a large weighting on this candlestick formation as statistically price reverses only 47% of the time.
However, look at the VIX. Three days in a row closing below the lower Bollinger Band!
Based these indicators, we should expect at least a minor reversal imminently.
From Investopedia:
A bearish harami may be formed from a combination of a large white or black candlestick and a smaller white or black candlestick. The smaller the second candlestick, the more likely the reversal. It is thought to be a strong sign that a trend is ending when a large white candle stick is followed by a small black candlestick.
Normally I would not put a large weighting on this candlestick formation as statistically price reverses only 47% of the time.
However, look at the VIX. Three days in a row closing below the lower Bollinger Band!
Based these indicators, we should expect at least a minor reversal imminently.
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