Introducing the three types of profit and an attempt to improve graphics.
Current action is revolving around how much of the monthly February and January candles will be chewed up in this decline.
Prices are holding above last week's low and long term moving averages. The recent weakness isn't as serious as that of Spring and Fall of 2018.
Monday loss was major buy opportunity. State change improved today. Linear regression slope strategy had buy signal today.
The initial selling bout has almost run it's course, usually blue sequences don't last more than 8 consecutive candles. The last week and a half has given us a crash course on not buying dubious candles, and how good the market is putting lipstick on pigs . Days where closes are lower than the open are usually not good buy points.
Current weakness may be contained but real test will see if a new high can be made soon. Weakness today makes Friday and Monday action seem more like a blowoff than an indication of strong underlying demand.
Worst day since March 21, outlook is neutral but leaning negative.
Moderately bullish, questions continue to be raised despite the advance on Tuesday
Assessing the rate of change strategy, testing with Excel
New strategy, market still neutral daily, bullish weekly.