House of Straw
CMT Association, Inc.
Advancing the discipline of technical analysis for nearly 50 years
1/?The Failure You Were Hoping For
Friday’s bearish engulfing candle on State Street’s S&P 500 ETF (SPY) was as good an excuse as any for the bears to take over and drive prices lower. However, the bears, those intent on selling shares away and locking in the gains of the first half of 2024, failed to show up for work. If you are a bullish investor, you’ve probably never been happier about someone else’s failure right now.?
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The two-candle pattern suffered a lack of confirmation on Monday. In the parlance of technical analysts, that constitutes a failure of the pattern (one which we anticipated in yesterday’s edition).?
What isn’t commonly known about bearish engulfing patterns is that while they are actually a pretty good predictor among candle patterns, they are an even better predictor when they fail...
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8 个月It's all about context and that's why no pattern is guaranteed to work.