I'm a beginner trader.
This thread is meant to help me, but the only way that's going to happen is if there's an active discussion, in which case everyone benefits.
What I'll attempt to do:
I will try to read market psychology/sentiment by analyzing TSX indexes. I ask of you to point out my mistakes.
I wrote this about an hour before market close. I don't think I'll have time to do this later in the day. I don't think much will change in an hour though.
From channel top to channel bottom in one day. Awesome.
What I like about the last candle is that it HUGE, on a relatively LOW volume. Meaning that everyone was selling, but no one was buying.
Was this a decline on news? Or are the people uncertain about the end of the week, causing everyone to lock in their profits?
What I don't like about this channel is that it might be a flag, and the huge candle is not helping me overcome that concern.
At the same time though, I don't expect there to be many bears left.
Prediction: If the index doesn't drop below 11,400, I expect a relatively strong bullish candle tomorrow.
TSX Consumer Staples and Discretionary are both not likely to come back tomorrow. After a strong 3 day rally, both have charted out strong tops.
Energy, Industrials, Diversified Metals & Mining, and Utilities will probably not make a comeback tomorrow. All of them are continuing their fall from their respective channel tops.
Financial, Info Tech, Real Estate and Materials will likely find strong support tomorrow.
Health Care, and Telecomm are expected to rise tomorrow.
You are welcome to comment on this. Constructive criticism is highly encouraged.
Edited by Anton Katz - 6/21/12 at 3:20pm