Warfield Management
Investment Solutions
Investment Solutions
This chart contains both a topping tail (top of the chart) and bottoming tail (bottom of the chart). The topping tail can indicate a change in momentum to the downside, while the bottoming tail is a signal of an up swing.
Harami- In this position represents a slowing in the downside momentum. (Hint: When there are two wide range bodies preceding this pattern, notice the WRBs form the flag pole of a bearish flag pattern which can signal a pull back.)
Doji- Represents uncertainty and slowing of momentum. (Hint: check the volume to insure that the bar is indeed a doji and not a narrow range body.)
Though a doji can signify a change in direction (trend reversal or pull back), as seen in this chart, it can also represent a break before continuing its previous movement.