AKAM gapped up on the open and carved out three sticks with small bodies and long wicks each with higher highs and lows. I didn't care for the wicks, so I decided to wait for price to take out Tuesday's high. I took a partial when price tagged resistance and exited the balance on weakness in mid-afternoon.
Thursday, March 08, 2007
Another Dummy - Akamai Technologies, Inc. (Public, NASDAQ:AKAM)
AKAM gapped up on the open and carved out three sticks with small bodies and long wicks each with higher highs and lows. I didn't care for the wicks, so I decided to wait for price to take out Tuesday's high. I took a partial when price tagged resistance and exited the balance on weakness in mid-afternoon.
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2 comments:
hi jamie.
Do always ignore the wicks and just focus on the small bodies? thanks!
BAsim.
Hi Basim,
I don't ignore the wicks because they are integral part of the candlesticks. If I'm long, the upper wicks cause me concern and if I'm short, the lower wicks can be a warning that the move is about to end. On the AKAM chart, notice that when price peaked in late morning and again in mid-afternoon, there were a lot of candles with upper shadows.
On the TSAI short, notice how there were relatively no shadows throughout the move lower, until the stock capitulated near the end of the session.
So my point is that I like to enter when the candles are still relatively small with less shadows and exit when candles start to show longer shadows that go against my position.
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