Never try and pick a bottom but look for the clues
The action yesterday on the NASDAQ was particularly interesting as market movement resulted in a "gravestone doji," which is a Japanese Candlestick formation that often signals a turnaround.
What a "gravestone doji" means is that the buyers and sellers are in an evenly matched tug-of-war and potentially signals the first clues that the NASDAQ may be putting in an interim low.
Take a look at the chart and see what you think. If the NASDAQ market closes higher than yesterday's high point, which is 1,806, then there's a good chance that we'll see this market at least have what some traders call a dead cat bounce.
It is not profitable to try to pick the top or in this case a bottom. What you want to look for are clues that maybe, just maybe, the market is beginning to put in a low.
Japanese Candlestick charts are a fascinating form of charting as they represent both a visual and psychology view of the market. If you're not familiar with this form of charting, INO.com will be happy to send you a e-book that explains most if not all of the major candlestick charting patterns. You can reach us at 1-800-538-7424, or email [email protected] to ask for the candlestick e-book.
I know the e-book will help your trading as it did mine.
Every success in trading,