Monday, December 13, 2010

Oceaneering International, Trend Change?

A favorite pattern for me to trade is the Three outside down candlestick, a definition, from Leavitt

The Psychology
In an uptrend or within a bounce of a downtrend, a bearish Engulfing pattern forms. By itself this pattern has moderate reliability as a reversal indicator, but when the it is followed by another black day (preferably on strong volume), the overall pattern becomes much more reliable.

The bearish Three Outside Down is a continuation of the bearish Engulfing.

If I can get a good fill I am going to sell a January call spread 75-80 sometime today.

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