Southwest Airlines Engulfing, Reversal Candle Signals Downside
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Southwest Airlines Engulfing, Reversal Candle Signals Downside
Southwest Airlines Co (NYSE:LUV) had an engulfing, reversal candle on Friday. When this occurs at the top of a chart, it is extremely bearish. Today, further downside is confirming the move. Southwest should have put in a top. Please also note the mega sized volume that accompanied the engulfing candle on the daily chart. This adds more credence to the reversal. While small bounces will happen, the likely outcome of this chart is a move to $30.00.
[spammer's contact info deleted by admin alex]
[spammer's contact info deleted by admin alex]
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Did someone take a wrong turn on the internet superhighway?
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
avalpert wrote:Did someone take a wrong turn on the internet superhighway?
RM
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Does anybody know what percentage of the Vanguard total stock market index fund is comprised of Southwest Airlines? I guess I'll be bearish on whatever percent that is multiplied by 0.4.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I have no idea what any of that means ... thank goodness.
The way I invest my money is not the right way to invest, it's the right way for ME to invest.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
ENGULFING REVERSAL CANDLE!!!!!!!!!!
"Don't be emotional about investing. So even a first investment should not be exciting." - livesoft
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Um, is this really just sort of an ad for his website?
RM
RM
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
It sure looks that way. This sock has been sitting in the drawer for 4 years too. Delete thread IMO.ResearchMed wrote:Um, is this really just sort of an ad for his website?
RM
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
This must have been intended as a PSA - excellent example of ignoring the noise...
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Or.....the market is recognizing fundamental improvement in business conditions and the price is increasing....gee, I wonder which it is...guess I will just own the market and not care!
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I do find the technical analysis terminology hilarious. "Iron Cross Double Eagle", etc. Reminds me of the names of plays called in the huddle during high school football. Too bad it is no more effective an investment strategy than reading coffee grounds.
We don't see things as they are, we see things as we are.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
It would have been neater if he would have told us to buy Southwest Airlines at $10/share about 18 months ago. Full disclosure - I have owned shares of Southwest Airlines in my passive large cap portfolio for a dozen years and I have no intention of selling (and paying huge capital gains) because of some clown on the internet.
Andy
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
In before the lock.
Actually, can we just delete his contact information and let the thread continue. We can use this as an excuse to point out the fallacy of technical analysis and other wizardry.
Actually, can we just delete his contact information and let the thread continue. We can use this as an excuse to point out the fallacy of technical analysis and other wizardry.
"Don't trust everything you read on the Internet"- Abraham Lincoln
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Reversing candle? More like flaming nonsense.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Sure. I thought I'd banned him a year ago when he tried the same thing. But then we wouldn't have learned about the Engulfing, Reversal Candle, so I guess it worked out OK.denovo wrote:In before the lock.
Actually, can we just delete his contact information and let the thread continue. We can use this as an excuse to point out the fallacy of technical analysis and other wizardry.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
good oneavalpert wrote:Did someone take a wrong turn on the internet superhighway?
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Our plays consisted of "everyone just go long." Same advice applies here.Steadfast wrote:I do find the technical analysis terminology hilarious. "Iron Cross Double Eagle", etc. Reminds me of the names of plays called in the huddle during high school football. Too bad it is no more effective an investment strategy than reading coffee grounds.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I'm still trying to figure out what had him all fired up.
Last edited by spectec on Mon Sep 22, 2014 8:50 pm, edited 1 time in total.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I want to know about the engulfing reversal candle that happened at about $27 back in July? Or was that a pre-conflagration acceleration candle?
Just watch out for when the price gets below that yellow line, that can be really good or really bad.
Just watch out for when the price gets below that yellow line, that can be really good or really bad.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
When I saw "Engulfing, Reversal Candle" I thought, this must be someone from Colorado or Washington who's had one too many you-know-whats.
Meet my pet, Peeve, who loves to convert non-acronyms into acronyms: FED, ROTH, CASH, IVY, ...
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
It's time for my perennial favorite: Blue Line Jumps 11 Percent
To new investors, you are seeing how stock traders work. This is a form of Technical Analysis in which elaborate terms are used to describe a Candlestick Chart.
Those who follow the Bogleheads investing philosophy don't need to understand any of these details. However, it's educational to see another aspect of investing.
BTW, the OP's location has been modified to "Spammer" - our virtual equivalent to "tar and feather."
To new investors, you are seeing how stock traders work. This is a form of Technical Analysis in which elaborate terms are used to describe a Candlestick Chart.
Those who follow the Bogleheads investing philosophy don't need to understand any of these details. However, it's educational to see another aspect of investing.
BTW, the OP's location has been modified to "Spammer" - our virtual equivalent to "tar and feather."
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Blue Line for Blue Star Airlines.
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I lost ALL credence in technical analysis when I read about "Fibonacci retraces." It's pure numerology. Fibonacci numbers are real enough, but there are reasons why they show up in nature--they are not mystical or mysterious. And none of the reasons why they show up in nature apply to stock market prices. It's like expecting stock prices to follow the digits of pi or something like that.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
You mean stock prices DON'T follow the digits of pi? Now you tell us!nisiprius wrote:I lost ALL credence in technical analysis when I read about "Fibonacci retraces." It's pure numerology. Fibonacci numbers are real enough, but there are reasons why they show up in nature--they are not mystical or mysterious. And none of the reasons why they show up in nature apply to stock market prices. It's like expecting stock prices to follow the digits of pi or something like that.
In theory, theory and practice are identical. In practice, they often differ.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
> You mean stock prices DON'T follow the digits of pi? Now you tell us!
Of course stock prices follow the digits of pi. The trick is finding out WHICH digits of pi.
Of course stock prices follow the digits of pi. The trick is finding out WHICH digits of pi.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Speaking of technical analysis...
When I took the series 65 test (http://en.wikipedia.org/wiki/Uniform_In ... r_Law_Exam), it treated technical analysis as a form of analysis which was as valid as other forms of analysis, such as fundamental analysis. It was clear that the "powers that be" (is that FINRA? NASAA?) are trying to be careful not to make value (no pun intended) judgments about any one way to analyze equities, regardless of validity.
When I took the series 65 test (http://en.wikipedia.org/wiki/Uniform_In ... r_Law_Exam), it treated technical analysis as a form of analysis which was as valid as other forms of analysis, such as fundamental analysis. It was clear that the "powers that be" (is that FINRA? NASAA?) are trying to be careful not to make value (no pun intended) judgments about any one way to analyze equities, regardless of validity.
If you have to ask "Is a Target Date fund right for me?", the answer is "Yes" (even in taxable accounts).
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
What does that mean? If 20 percent of brokers start using astrology symbols to make transactions; buy Pharma drugs in Cancer, will they add a section on that in the exam too?neurosphere wrote:Speaking of technical analysis...
When I took the series 65 test (http://en.wikipedia.org/wiki/Uniform_In ... r_Law_Exam), it treated technical analysis as a form of analysis which was as valid as other forms of analysis, such as fundamental analysis. It was clear that the "powers that be" (is that FINRA? NASAA?) are trying to be careful not to make value (no pun intended) judgments about any one way to analyze equities, regardless of validity.
"Don't trust everything you read on the Internet"- Abraham Lincoln
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I recall a critic writing something about technical analysis referring to some technical analyst discussing an upside "resistance point". Basically, if you get to the resistant point then the stock will go down if it doesn't go up.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I'd compare stockpickers to astrologers ... but I don't want to bad-mouth the astrologers.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I think it was John Bogle, or perhaps Milton Friedman, who said "When Mercury is in retrograde, sell! Otherwise, buy and hold your index funds."denovo wrote: What does that mean? If 20 percent of brokers start using astrology symbols to make transactions; buy Pharma drugs in Cancer, will they add a section on that in the exam too?
If you have to ask "Is a Target Date fund right for me?", the answer is "Yes" (even in taxable accounts).
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
In defense of technical analysis, many things in human behavior follow patterns, which tend to repeat. In the modern world information flows so quickly it is hard to see how one might take advantage and profit. However, in an era where most got price changes from a daily paper, charting a stock"s patterns might actually offer opportunities. I remember observing very disciplined charting done by hand in the 60s that led to some very good trades by someone close to me. During the pre-computer era is it really so hard to believe there were opportunities?
Note, I do not use technical analysis, but would not be shocked if some basis in prediction may have existed in the past, allowing forms of behavioral arbitrage. I am open to the idea.
Note, I do not use technical analysis, but would not be shocked if some basis in prediction may have existed in the past, allowing forms of behavioral arbitrage. I am open to the idea.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Careful nisi. Pi tends to show up in the damnest of places. Here is one that you might enjoy and actually may have something to do with the stock market if you believe in the fractal theory of the markets.nisiprius wrote:It's like expecting stock prices to follow the digits of pi or something like that.
You know the mendelbrot set is defined by the iteration (z^2 + c) for values of c that don't diverge to infinity. Take the value c=0.25 which is on the boundary. If you ask how many iterations it takes for a point near that value to diverge, the answer is .....the digits of pi as you get closer and closer to 1/4.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Here's a comprehensive list of the descriptor terms: Candlestick Charting Glossary
Reversal sesssion is under the "Western Technical Indicator" section (near the bottom).
Reversal sesssion is under the "Western Technical Indicator" section (near the bottom).
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Reversal candle ... not creative anough . Try another technician's term to signal bearish sign: Death cross .
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Wow. Here's the first entry:LadyGeek wrote:Here's a comprehensive list of the descriptor terms: Candlestick Charting Glossary
Reversal sesssion is under the "Western Technical Indicator" section (near the bottom).
Is this satire?abandoned baby: A very rare Japanese candlestick top or bottom reversal signal. It is comprised of a doji star that gaps away (including shadows) from the prior and following sessions' candlesticks. This is the same as a Western island top or bottom in which the island session is also a doji.
Abandoned Baby
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Watch that first step, it's a Doji...
Henceforth, content shall be my aim, and anticipation my joy. -Alfred Billings Street
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I was thinking to throw down a challenge for the best novella using nothing but phrases from that glossary. Investing related, of course.
We have a post for personal investments: When to jump ship?
Also, one for personal finance: Re: Girlfriend moving in, lots of student loan debt
Source: favorite bogleheads posts?
We have a post for personal investments: When to jump ship?
Also, one for personal finance: Re: Girlfriend moving in, lots of student loan debt
Source: favorite bogleheads posts?
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
"abandoned baby: A very rare Japanese candlestick top or bottom reversal signal. It is comprised of a doji star that gaps away (including shadows) from the prior and following sessions' candlesticks. This is the same as a Western island top or bottom in which the island session is also a doji."
Well, that's not really very different from the
Tiger Lilly Traditional, when the candlestick middle on both top and bottom stay the same throughout the next sessions. This is most pronounced when the opposing candlestick signals show divergence and symbiosis that is greater than it was before.
Hopefully one has already sold prior to this.
[Sorry that I'm not sure how to insert the diagram.]
Why is there a problem with this?
RM
Well, that's not really very different from the
Tiger Lilly Traditional, when the candlestick middle on both top and bottom stay the same throughout the next sessions. This is most pronounced when the opposing candlestick signals show divergence and symbiosis that is greater than it was before.
Hopefully one has already sold prior to this.
[Sorry that I'm not sure how to insert the diagram.]
Why is there a problem with this?
RM
This signature is a placebo. You are in the control group.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
I can't believe people are gullible enough to give credence to this stuff.
Gordon
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
This is fun...
After my Three-Buddha lunch, with dumpling tops and a frypan bottom, my belt-hold line is becoming a separating line.
Though, I'm sure if any of us went to a technical analysis forum and advocated maxing out your lazy portfolio and LBYM until you reach FIRE, people there would be equally confused.
After my Three-Buddha lunch, with dumpling tops and a frypan bottom, my belt-hold line is becoming a separating line.
Though, I'm sure if any of us went to a technical analysis forum and advocated maxing out your lazy portfolio and LBYM until you reach FIRE, people there would be equally confused.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Hover your mouse over the image, right-click to view the image. Copy-n-paste the URL inside [Img] tags. Alex Frakt's image is posted like this:ResearchMed wrote:Why is there a problem with this?
RM
Code: Select all
[img]http://www.candlecharts.com/sources/glossary%20images/abandoned%20baby2.gif[/img]
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
It's a double rainbow!!!!!!
Youtube it if that doesn't resonate.
Youtube it if that doesn't resonate.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
This was a JOKE.ResearchMed wrote:"abandoned baby: A very rare Japanese candlestick top or bottom reversal signal. It is comprised of a doji star that gaps away (including shadows) from the prior and following sessions' candlesticks. This is the same as a Western island top or bottom in which the island session is also a doji."
Well, that's not really very different from the
Tiger Lilly Traditional, when the candlestick middle on both top and bottom stay the same throughout the next sessions. This is most pronounced when the opposing candlestick signals show divergence and symbiosis that is greater than it was before.
Hopefully one has already sold prior to this.
[Sorry that I'm not sure how to insert the diagram.]
Why is there a problem with this?
RM
I guess an ultra-early response to Lady Geek's challenge (that I hadn't yet seen).
It is already showing on a Google search - gaak!
But bs010101 did a MUCH better job
RM
This signature is a placebo. You are in the control group.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
Is that what that was? Must have been someone lighting up after tampering with the smoke detectors in the bathroom. I thought we hit a bird and we were doomed. The crew did a great job keeping everyone calm.Southwest Airlines Co (NYSE:LUV) had an engulfing, reversal candle on Friday.
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
They always do that immediately after landing. It keeps them from running off the end of the runway, while saving wear and tear on the brakes.
"If you change your strategy frequently you don't really have one." --Garry Kasparov
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
You can buy the part of technical analysis which has stood out under "grilling" with products like the MTUM ETF (0.15% ER). Relative price momentum a.k.a. the fourth factor from French's data library. Jegadeesh/Titman, Carhart and so on. At Jason Hsu's website there is a short intro in one of his course PDFs*. Interestingly this kind of momentum has shown a higher t-stat than the market factor itself - as does value, see Harvey's "factor inflation" paper**. Doesn't mean momentum will continue to behave in the future as it did in the past, of course! On the other hand, at least among U.S. stocks it does since 1801 (see "The longest backtest in the world" paper***), so there is that.
Anyway, I don't see the need to read more about TA myself. Doesn't seem to be worth the effort to learn about dubious "chart formations".
* http://www.jasonhsu.org/uploads/1/0/0/7 ... 237h_4.pdf (page 9 and following)
--> everything at http://www.jasonhsu.org/ucla-mfe.html is worth a read I think not for fans of simplicity, obviously
** http://papers.ssrn.com/sol3/papers.cfm? ... id=2249314
*** http://papers.ssrn.com/sol3/papers.cfm? ... id=2292544
Anyway, I don't see the need to read more about TA myself. Doesn't seem to be worth the effort to learn about dubious "chart formations".
* http://www.jasonhsu.org/uploads/1/0/0/7 ... 237h_4.pdf (page 9 and following)
--> everything at http://www.jasonhsu.org/ucla-mfe.html is worth a read I think not for fans of simplicity, obviously
** http://papers.ssrn.com/sol3/papers.cfm? ... id=2249314
*** http://papers.ssrn.com/sol3/papers.cfm? ... id=2292544
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Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
There are short term momentum effects which should provide a small bonus. But I suspect that TA makes money the same way anyone who holds stocks makes money. Holding any stock, no matter how you arrived at the buy decision, gives you a positive expected return. Do chartists actually track their results against an appropriate benchmark (which is unlikely to be the S&P 500)?Pizzasteve510 wrote:In defense of technical analysis, many things in human behavior follow patterns, which tend to repeat. In the modern world information flows so quickly it is hard to see how one might take advantage and profit. However, in an era where most got price changes from a daily paper, charting a stock"s patterns might actually offer opportunities. I remember observing very disciplined charting done by hand in the 60s that led to some very good trades by someone close to me. During the pre-computer era is it really so hard to believe there were opportunities?
Note, I do not use technical analysis, but would not be shocked if some basis in prediction may have existed in the past, allowing forms of behavioral arbitrage. I am open to the idea.
Re: Southwest Airlines Engulfing, Reversal Candle Signals Do
When I read the first part of the title, my heart actually stopped for a second because I thought there was a plane incident, but then I read the second clause and realized this wasn't a news forum.LRonHalfelven wrote:They always do that immediately after landing. It keeps them from running off the end of the runway, while saving wear and tear on the brakes.
"Don't trust everything you read on the Internet"- Abraham Lincoln