Friday, September 21, 2012

Weekly Inside Bar

Weekly Inside Bars are rare but they occur. And if history is any indication, we should see a dip early in the week and a reversal.

In the chart below, I highlight the last time this occurred with a green arrow (towards the left of the chart). Two similarities - the prior week's weekly bar had closed outside the Bollinger Band prior to the inside bar and the weekly Stochastics look very overbought.

Will history repeat? I think so but the market will tell ;-)

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