Lots of Tails
I don’t think today needs very much comment, but an example of a trading tip appeared during the first few bars this morning. Candlestick extensions above and below the day’s open and close have various names. Some call them wicks, some call them tails.
See how noticeable they are during the early trading. When a number of very long tails appear in both directions on consecutive bars, they are an early indication of market indecision and often lead to false moves or sideways action. When I see them, I am hesitant to trade. And today that served me well.
About the only good thing from a trader’s standpoint is that volatility runs in cycles. Excluding the explosive move after the Fed announcement, the last few days have been very flat. Either we will get some movement soon or I’ve mis-read the calendar and summer is here already.
