August 13th Market Direction
The weakness in the markets became evident last week with the Doji's in the overbought condition. All the indexes of now close back below the T line after indecisive trading from last week. This implies that the trend channels and the wedge formation become the predominant indicators. This would make the likelihood of a sideways moving market most probable. It is not unusual to see these market conditions in August. The indecisive nature of the market can be more clearly illustrated due to the fact that numerous stocks are trading up one day and down the next day. This makes the T line a much more relevant factor when analyzing individual stock charts.
Expect more sideways movement for the next few weeks. This indicates a trading strategy that is much less aggressive on the bullish side. These market conditions warrant having both long and short positions in the portfolio. It's about all what to say about that
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The Candlestick Forum Team
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