Compression Candlestick Pattern Indicator Analysis

Quantity Indicators Allow for Early Stock Entry

All indicators have limitations and Market Conditions, where the indicator fails or does not provide a true positive or negative pattern, or is simply unable to keep up with the speed of momentum price or volume activity. Bollinger Bands® are no exception. Bollinger Bands and the various other indicators written by John Bollinger CFA, CMT are excellent indicators, however all indicators have times when they lag behind price.

Both chart examples in this article are the same stock. See chart example #1 below.

Adding Quantity Indicators to the analysis allowed for an early entry into this stock, ahead of the High Frequency Trader action. Chart example #2 has Volume, Money Flow Index MFI, and Accum/Dist Indicators.

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Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using StockCharts charts, courtesy of StockCharts.com

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