Page 143 - THE MARKET WHISPERER

THE MARKET WHISPERER 14 1
AAPL One-Minute Candles

Here the power struggle is more clearly seen. We see a constant, strong

increase of clear candles indicating buyer control, and then a sequence of

black candles indicating that sellers have taken control. Although at the
end of the fifteen-minute interval the stock price rose, the tail’s formation
shows a shift in control, and therefore an anticipated change in direction

of the stock’s price. In the previous chart, you can see that this is exactly

what happened.

SMART A topping tail indicates that sellers take control, and a
MONEY bottoming tail indicates that buyers have taken control.
Tails are an excellent tool for predicting price reversal.

Does the color of the candle have meaning relative to the tail? In the
fifteen-minute AAPL chart, the candle is clear: this indicates a rise in price.
If it were dark, indicating a drop in price, then the tail would even more

strongly imply change of control.

A topping tail indicates that sellers have taken control. The longer
the tail, the stronger and clearer the control. The candle color makes no
difference.