It was as plain as the company name over the front door of the building: A major decline in the value of Bear Stearns’ shares was set in motion more than a year ago. The signs were so clear that anyone possessing knowledge of Japanese Candlesticks stock price charting could have seen it coming, if only he had chosen to look.That sounds preposterous on the face of it. What “signs” were there, that long ago, when Bear’s fundamentals were good and its stock price was at a peak? Let me count the ways.The key lies in Japanese Candlesticks stock price charting analysis. The Candles pay no attention to fundamentals. What they have, in spades, is their ability to reflect the underlying psychology of the market for a particular stock, or Index, or commodity, at any given time.Within Candlestick charting, there are a dozen or so major price patterns which form the basis of the analysis. One of them is the “Evening Star” pattern, which typically is formed by the price bars of three time periods – say, the bars representing three months in a row, or three weeks in a row, or three days in a row. The first bar… Read full this story
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