GOLD bearish engulfing (but I'd prefer a higher open). Weekly candle forming a bearish harami. Trading back below weekly 3lb mid.
WTI major down day (long closed candle). Yesterday it closed below trendline formed from 12/14/09 & 12/21/09. no daily 3lb reversal and still trading above weekly 3lb mid.
DXY high wave candle (lots of volatility). Not a doji but a small body candle. It's trending down on the daily 3lb but still above the weekly 3lb mid (76.81).
SPX:
GOLD:
WTI:
DXY:
A purple background? Kind of hard to read...
ReplyDeleteWhat does a "daily 3lb reversal" mean?
Daily three line break. 3lb is easier to type :)
ReplyDeleteI'm going through color choices right now.
Hello AmenRa -
ReplyDeleteNice report.
How does one interpret the 3lb?
How do you identify it in your charts?
Wes,
ReplyDelete3lb (three line break) uses closing prices. Every new high(low) is a break. To take out three new highs(lows) does harm to the psychology of the market participants and is usually the beginning of a trend change. I use monthly 3lb for the long term view and weekly 3lb for the shorter term view. I have a post up with the monthly 3lb for the SPX going back to 1966: Long Term View of SPX
Wes,
ReplyDeleteI didn't include the 3lb on the daily ruminations. Take a look at the weekly updates for the 3lb.
AmenRa-
ReplyDeletethanks for that explanation,
i am still going to have to digest the full implications.
i have an open mind
Wes
@Wes,
ReplyDeleteRa posted this other 3lb link at ATs a while back that may help you ...
Stator-Three Line Break
@Ra-I bookmarked one you gave from Nison too, but the link broke - do you still have it?
Found it...
ReplyDeleteGoogle books preview of 3lb section in Nison's Beyond Candlesticks
2small2bail,
ReplyDeleteI was hoping someone had put Nison's book on scribd. No luck as of yet.