The market considers a bullish attack but is still hesitating to do so. The previous bullish pattern is not confirmed today. According to our rules, it is by now null and void. However, a new bullish pattern is developing and another BUY-IF alert is issued today. It is the time to repeat the homework. Sounds tedious? Well, earning money is not easy. Keep an eye on after-hours and futures trading and digest all related news, events, economic data and the outlook of the world stock markets prior to the next confirmation session.
The next session will also be a moment of truth for the previous SELL signal. So a warning is in order. A confirmation means that signal system erred badly in the last signal. This failure amounts to missing a significant bullish opportunity. You can, however, ride on a back wagon of the bullish train by following the guidelines below.
You must check if one of the following three confirmation cases hold or not:
Does the market open with an upward gap? Your benchmark is the opening price. If the prices stay over this benchmark, go long.
Does the market open at a level, equal to or below the previous day’s close? The benchmark is that closing price. If prices during the session stay over this benchmark, go long. In both of the above cases, avoid buying if the prices during the session start coming below the benchmark.
Check also the rare case in which market opens with a big downward gap but the day ends with a long white candlestick though still closing below the previous close. Such activity confirms the bullish alert and the benchmark is the closing price of the long white candlestick.
If one of these confirmation criteria is not met, or in case of a black candlestick or doji, the BUY-IF alert remains valid (without confirmation) postponing the confirmation search to the next session. Any long black candlestick following a BUY-IF alert, on the other hand, makes the signal void and invalid.
Do not consider any new short positions given the bullish alert and the recent bullish momentum. The short sellers must cover their positions to prevent further losses, especially if the market confirms the BUY-IF signal, in which case we owe you an apology about the previous SELL signal.
