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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.

  1. A bullish engulfing pattern (top pane in yellow)
  2. A bullish crossover haDelta :: SMA(3) (lower pane in yellow)
  3. The crossover replaces the meaning of the bullish engulfing pattern
  4. 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)

 

How Heikin-Ashi Makes Candle Patterns Redundant (XLF $XLF) 6/5/2012

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