Shooting starAs we saw this week there was some discussion on what is what with some technicals like candles.
On Tuesday we had some posts about a shooting star. Which it was not as was explained by some. Why it matters...will get to it. But here is an example of a shooting star.
Shooting star example Now it does not make what happened on Tuesday any less bearish but it does support a theory explained by Alexander Elder who has written a bit about the markets and technical trading. He has a theory and it has played out over the years to ring true for me. In the hounds of the Baskervilles a Sherlock Holmes story the crime took place but the dog did not bark so therefore Sherlock assumed that the criminal was known to the dog. Now on Tuesday RHT was a pretty hard reversal day signal and by the end of the week or 3 days later we blew the bears plan up. The dog did not bark. The bears did not win out in the week even though Tues was a hard drop with huge volume. For longs it a good sign. The bears are not in control here. The bulls are. Its a very strong signal that the bulls want in and are in control. Also shows that candles are very short term in nature. If the dog is supposed to bark and doesn't its a good sign for your position if its going your way.
RHT Chart for the week The stock I use as an example of a shooting star is now climbing out as I believe their prototype is working as per their design. This is a pathogen detection machine with a market globally in the billions. Worth your DD and if it keeps on rising here ....though on low volume....its all repeating the say theory by Elder. The dog isn't barking. Something isn't making sense if you are a bear and its time to assess your view on direction.
What happened here this week with RHT is very bullish in my opinion.