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How Heikin-Ashi Makes Candlestick Patterns Redundant (XLF $XLF)
June 6, 2012
As everyone who uses heikin-ashi knows, this technique can be used as a replacement for very many of the complex and subjective candlestick patterns (100+). XLF (Financials ETF) chart is just another example.
- A bullish engulfing pattern (top pane in yellow)
- A bullish crossover haDelta :: SMA(3) (lower pane in yellow)
- The crossover replaces the meaning of the bullish engulfing pattern
- XLF has room to go up to its resistance (lower pane, red dashed line) that may coincide with the price resistance (top pane, red dashed line)