Comment on Indicators (Part 2)

chidambaram commented on 22 Mar 2018, 11:38 PM

HI Sir,
If the RSI or Bollinger band show a bullish sign (say RSI less than 30 or price at -2 SD line of bollinger band) but the candle pattern formed is a bearish maruboza pattern and all other checklist coincide with candle pattern ,except the indicator( which is in contradictory to candle pattern and other checklist item) ,then what to be done in this case?
1.Go by the candle pattern and other checklist and sell the stock.
2.Go by the indicator and buy the stock as it is oversold/overreacted.
3.Simply avoid the trade since indicator and candle pattern (along with other checklist) is contradicting to each other.
Also explain the thought process behind your choice.

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