What the close of the last two 12 month candle mean for the SPY.
The 12 month candle closes tomorrow which signifies a Dragonfly candle stick on what would be the 24 month chart. As trading view does not allow a 24 month timeframe. By adding these two candles together and what looks as a top of an uptrend demonstrates a potential reversal signal.
- A dragonfly doji can occur after a price rise or a price decline.
- The open, high, and close prices match each other, and the low of the period is significantly lower than the former three. This creates a "T" shape.
- The appearance of a dragonfly doji after a price advance warns of a potential price decline. A move lower on the next candle provides confirmation.
As explained nothing is certain until a confirmation candle.
In fact over the next 12 months one might even suspect such pattern to be displayed.
By adding up the previous 24 month candles prior to the current one a Gravestone doji would of been printed and then a dragon fly with the recent 2.
So the potential for a push up to new highs and then another bear market and to potentially end up posting a doji or something similar may also be on the card. Due to macro economics factors looking glim.
Just a thought.
- A dragonfly doji can occur after a price rise or a price decline.
- The open, high, and close prices match each other, and the low of the period is significantly lower than the former three. This creates a "T" shape.
- The appearance of a dragonfly doji after a price advance warns of a potential price decline. A move lower on the next candle provides confirmation.
As explained nothing is certain until a confirmation candle.
In fact over the next 12 months one might even suspect such pattern to be displayed.
By adding up the previous 24 month candles prior to the current one a Gravestone doji would of been printed and then a dragon fly with the recent 2.
So the potential for a push up to new highs and then another bear market and to potentially end up posting a doji or something similar may also be on the card. Due to macro economics factors looking glim.
Just a thought.