“Way down here, you need a reason to move.”
— James Taylor, Mexico
NOTE: I’ll be driving down the gritty paradise of Baja, unplugged for a week. Hopefully, they’ll let us back in. Your Daily Bit of Wall Street Wit & Wisdom will return on Monday, April 8th.
Market price also needs a reason to move. That reason is the human behavior of buying and selling. I’m not smart enough to know all the factors which influence why people act the way they do. That is why I use Japanese Candlestick charts to study the character of the behavior of market price movement. Candlesticks account for the actions of the Algos (algorithmic trading by computer), as well.
Japanese charting techniques vividly depict who has the advantage, buyers or sellers, and are a great tool to determine when and where the balance of power is likely to shift.
Have a great week ahead!