If we had to come up with one simple drawing, one simple symbol, that would represent investment uncertainty and a potential financial trend reversal, it would be a long vertical line with a short horizontal line through the middle of it. As it turns out, no one is going to ask us to come up with anything like that, because someone else...already has.
The image we just described—the long vertical line with another short line across its middle—is a variation on the long-legged doji, called the “rickshaw man.”
We see these on candlestick charts, and they essentially tell us two things. First, there wasn’t a whole lot of difference between the opening price and closing price of this security. That’s why that horizontal line is so thin. Second, there was a wide range of trading activity during that same period of time, which means investors aren’t really sure how to proceed.
This is why the vertical line has such long tails. Some investors are feeling a little bearish, while others are ready to embrace a little more bullishness. The overall result is a candlestick pattern that reflects this uncertainty. While we can’t say for sure that every rickshaw man is going to lead to a trend reversal, they often do. Not immediately, but like…pretty soon. So if we suddenly see one hanging around our favorite candlestick chart, we might want to consider buying or selling soon.
Related or Semi-related Video
Finance: What are Triple Bottom and Trip...2 Views
Finance allah shmoop what are triple bottom and triple tops
All right well this is a triple top It wants
to break out The stock was trading down here around
five bucks a share in and glam o it went
up And yes blam o is the name of the
company's new anti constipation drug a huge hit So it
went up up up to hear it Fifteen bucks tripled
in value in just a few months but then sober
reality began to hit the investing community There simply wasn't
enough constipation to go around So the stock began to
flag and traded down teo here this level at twelve
bucks But then glam o again released big news a
partnership with manish of its grandma tsa and the american
cheese manufacturing association So the stock raced again to fifteen
But no there just wasn't enough enthusiasm from buyers pay
more than fifteen bucks a share for it So you
know that's all despite this newly created a kind of
market So the stock sank back to twelve only to
then have investment interest from procter and gamble owners of
sharman who bought five percent of the company at thirteen
fifty ish year and left a lot of investors thinking
surveyed by the whole company complete with its product line
of anti constipation drinks Waymo glam Oh thankyou memo But
alas the investment community would not pay up past fifteen
to share and the stock flagged again sinking back to
twelve having created a triple top and needing something to
make things really start you know going So yeah that's
a triple top What about a triple bottom Well a
triple bottom and basically just the same thing in reverse
like this keeps hitting a low point looking like it's
going tio bottom out further But then it recovers on
the subject of bottoming out well glam o is now
available in new chewable gummy form Yeah glam o so
you never have to worry when your bottoms out
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