dojis - interactive brokers · volatility is a trader’s friend and it is back… the stock market...
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DOJIsHow to identify the next move Before it happensBy Thomas H. Kee Jr.President and CEO, Stock Traders Daily
A 40% move in the NDX. Oct 2018 – April 2019
NDX
Where? Upor… Down?
Stimulus NO VOLATILITY Trading was Fruitless
That has changed. No more Stimulus Volatility is back.
Volatility is a Trader’s Friendand it is back…
The Stock Market And individual stocks
DOJIs W-Patterns Fibonacci Calculations Other Technical Terms
Why DOJIs? Early notifications of Reversals in trend Up to down Down to Up Opportunity
A 40% Opportunity Oct 2018 – April 2019
NDX
The DOJI In the little circle
NDX
What does a DOJI look like?
The DOJI In the little circle
NDX
MORE THAN 1 MARKETDOW, NDX, SPX, RUT2018 - 2019
Let’s Look at DOJIs
#1Oct 2018 DOJIResult = 20% DeclineDOJI + Conformation followed
NDX
Look at the S&P 500 – same timeBack – to back DOJIs
SPX
SPX – Second DOJI
SPX
SPX – Third DOJI
SPX
SPX – Fourth DOJI – first buy side
SPX
SPX – Fifth DOJI – engulfing
SPX
A Perfect DOJI PatternSPX Dec 2018A perfectly shaped DOJIAn engulfing Red CandleDownside Confirmation
SPX
5 DOJIs in December’s DeclineNow lets look at more recent trends too.
NDX againDOJI identifies the topAfter a 7.9% increase
NDX
3.21 DOJI3.3% Decline
NDX
DOJI identified the beginningOf the BIG W Pattern
NDX
DOJIs are leading Indicators They identify shifts in trend. But other technical tools help too. Fibonacci Calculations help too.
Recent Tendencies DOJIs have Identified declines most often DOJIs work best when markets act naturally. Buy – side Stimulus clouded this until recently. No stimulus = more normal trading No Stimulus = more volatility No Stimulus = more opportunity And, Trading tools can be more effective.
More Opportunity for Traders
We’re Back RandolphThe times have changedStimulus is no longer flowingVolatility has increasedTrading Opportunities have increasedTrading Tools are working againWe need to remember how to use these.
Look for these DOJIs + An engulfing candle afterwardsDOJI + Engulfing = Leading Indicator
Fibonacci identified the NOSEDec 26, 2018.
NDX
Fibonacci More Information about the Dec 26 Bottom Please email us and we’ll send the report. [email protected]
Stock Traders Daily www.stocktradersdaily.com
