Wednesday, October 18, 2017

2017 Juggernaut more than most people thought possible, the Top or Not?

The way I would like to organize the data regarding trend is I have a tendency of framing price action [for bullish continuations] in terms of Rally-Consolidation- Rally where it spends time basing inbetween before the next rally

Intra-day high printed at 23,177

I also would favor trading a bearish scenario where price drops quickly, tries to hang on to some gains, rallies back, bases and drops again.

But since most of the spring, summer and fall of this year, the pattern has been very consistent.  So I shaded the "character" of the underlying move.  That is to say that each of the rallies are boxed in with mainly bullish (daily) closing candlesticks and the corrective waves are mostly red and longer bodied bearish closes. 

I won't cite each date from start to finish, but the color-coding should do the trick.  The uptrend here is definitely in tact, so I would react differently in coding a way of trading things in an environment where falling prices yields profits.  That is not the case yet, even though corrections are a natural function of the stock market. 


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