The Zig Zag indicator illustrates the most important price reversals by filtering out changes less than a specified amount. The indicator is created by straight lines being drawn between points on a chart where prices have reversed by at least the amount specified.
Ironically, many of the most spectacularly successful trades of all time were made of one of the so called ‘black’ days, where the market saw a huge decline. Black Monday refers to Monday, October 19 1987, when the Dow Jones Industrial Average (DJIA) fell 22.6% – the second largest one day decline in recorded stock
Jesse L. Livermore was born in South Acton, Massachusetts, in 1877. Livermore made and lost four stock market fortunes during his career.
The Ladder Bottom is a five candle bullish reversal formation. The pattern occurs during a downtrend, with the first three candlesticks are black with successive lower opens and close. The fourth day is a black candle with only an upper wick. The fifth day is a white candlestick that opens above the body of the
Homing Pigeon is a two candlestick bullish reversal pattern. The formation occurs during a downtrend with a large black candlestick followed by a short black candlestick engulfed by the first. The formation suggests that the existing downtrend is weakening.