Saturday, April 22, 2006

Examples Of A Downward Trend

The Downward Trend.

Yesterday, we looked at the upward trend. As you might imagine, our downward trend is the opposite of the upward. As usual we are looking for a downward slope of round about 45 degrees, to ensure that our trend looks sustainable enough for us to get in and make some profit.

Click to enlarge
Depending on the width of the trend (support and resistance lines) you may find good opportunity to enter and exit trades for some quick profit ( in our image it is 60 Pips or so) . Make sure you know what the bid offer spread is if you try this. – it can make all the difference!

Todays Japanese Candlesticks - Dragonfly Doji

This is what is known as a Dragonfly Doji. Often seen at the bottom of a downward trend, our long downward ‘tail’ or ‘wick’ could indicate a bottoming out and reversal.
These Dragonfly Doji are a stronger indicators than the Hammer shown below.

Bullish Hammer

Thats all for now - See you next time
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