Chart of the day: BBY

September 8, 2011

Yesterday (2), a reversal doji-like candle signaled reversal for today (3).

Although a white heikin-ashi candle was printed today (3), it was timid, with a negative price action.

Observe that (1) corresponds to a previous reversal level in August (second pane).

As long as the heikin-ashi close remains below the average (first pane), the trend is considered bearish. The negative average (pane 2) is still negative and supports the timid reversal sign today.

As a conclusion, the reversal signs on the heikin-ashi chart (panes 1 and 2) are not reliable.

chart of the day 09/08/2011 BBY

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