Be Better Prepared

The importance of understanding market structure and candle stick recognition is the difference in being a great trader and one who blows several accounts. By getting in the habit of recognizing these signals as they develop, it will help you protect your portfolio, and ultimately your positions. 

The one thing all of these charts have in common are big upper wicks on the daily time frame. This is typically an indication of exhaustion. These names made massive moves to the upside and took a breather this week. The signs were there, and gave a three day notice that a move was coming. When price rejects in blue sky territory it's probably a good time to start to consider taking some risk off the table. By being able to identify these easy-to-spot candle sticks as they occur, you can for sure be comfortable in whatever direction the market decides to go.

I encourage you to chart some of these on your own, and look for similar  patterns that have happened in the past by looking to the left of the chart. 

11/28