Give a Spinning Top for Boxing Day
- Posted by Greg Harmon
- on December 26th, 2012
The day after Christmas is Boxing Day, when servants and tradesmen traditionally received gifts from their superiors. Obviously an outdated tradition as all Superiors take off the whole week between Christmas and New Year’s and they expect to get presents from their servants now, not give them away. This raises some indecision about what to do. Get your boss a gift or not? Why not give them a Spinning Top? No, not the kind that a child plays with but the Japanese Candlestick variety. This candlestick is indicative of indecision. A small body with long upper and lower shadows. Where do you get one you ask? How about chart or NPS Pharmaceuticals, $NPSP, below. The candle on December 21st is a perfect example and can be used to illustrate a point about these types of candles. The The long upper and lower shadows show that neither buyers or
sellers were in charge. and the Large volume indicates that it was a big battle day. These candles are often though of as reversal candles. But as shown by the follow up on December 24th that is not necessarily the case. The trend can continue. Another point is that they do not signal an immediate change. This could still reverse and the Spinning Top will be noted as a reversal candle. Confirmation is required but when it comes can then be relied on.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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