Chart of the day: XLF

August 29, 2011

Heikin-ashi is not a mechanical trading system; it is a far better technique to see and to stay in favorable trends.

The financials (XLF) displayed a doji-like candle on Friday. The simple five heikin-ashi rules rules indicated a possible reversal, even the start of a consolidation. On the other side, the average in the bottom pane remained positive. Today’s bullish action was a confirmation that the average counts and should be taken into consideration.

heikin-ashi chart of the day 08/29/2011 - XLF

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