It is the IT Sector's turn to Reverse !

Weekly Chart 

 The above weekly chart shows how the  "Outside Day" reversal pattern - shown in red elipse - on the weekly charts of the IT Sector Index has warned of a reversal with regularity.Occuring on weekly charts makes the signal stronger.

Outside days are days where the current candle is both higher and lower than that of the previous candle. 

The pattern has occured once again alerting of an impending reversal !!

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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

An Evening Star - A Powerful Bearish Reversal Signal

Daily Chart

 An evening star pattern formed on Dr.Reddy today.The gap up made on Friday the 28th February , the long upper shadow which makes the candle a bearish shooting star which formed on huge volumes and the bearish candle which closed the gap today makes the reversal signal stronger.     


This coming after a spectacular run up increases the probability of a reversal.

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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reversal Signals in S&P500 ?

Monthly Chart 

The S&P 500 has had a dream run , which probably remains a dream for most participant. The monthly charts have formed an Outside day pattern which is a reversal signal. 

 Outside days are days where the current candle is both higher and lower than that of the previous candle. Outside days mark greater volatility in  price for that day.In the case of S&P500the current candle engulfs previous three months range indicating the possibility of reversing is higher.

 Watch out if the low of the candle at 1738 breaks !

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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com