3 Advancing White Soldiers Marching out of the Manure Stocks
- Posted by Greg Harmon
- on October 6th, 2011
Some chart patterns stick out stronger than others. One of these for me is the Three Advancing White Soldiers. Without looking at a chart the name connotes goodness and strength. Think about it. White Soldiers, not the Dark bad guys, and they are Advancing, taking new ground. The Japanese were masterful at naming their patterns. This one is a series of three long bodied bullish candles in a row, each finishing at or near the high of the day. This is a bullish continuation pattern and gains even more strength if it occurs after a consolidation from a lower area or a fall. If there are gaps or jumps between the real bodies then the action may be getting extended. And if there are long upper shadows or the real bodies are getting smaller on the advance this is a sign of the move running out of steam. Today’s market shows two very good examples of each variation of this pattern, in the Fertilizer space. Check them out and stick with the strongest.
Long and Strong
Agrium, $AGU

CF Industries, $CF

Extended
Monsanto, $MON

Terra Nitrogen, $TNH

Out of Steam
Mosaic, $MOS

Potash Corporation of Saskatchewan, $POT

Hmmm, I wonder which version might apply to the $SPY, $IWM and $QQQ?
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)