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Candlestick IV: Thrust Day and Run Day |
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Written by Administrator
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Friday, 12 September 2008 |
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A thrust day
An up-thrust day is when the close for the current period surpasses
the previous period's close. A down-thrust day is when the close for
the current period is
below the previous period's close.
Similar to spike and reversal days, thrust days signify both the
strength in the market as well as the possibility of directional
reversals. A series of up-thrust days would suggest a pronounced up
trend, while a series of down-thrust days would indicate a downtrend
dictated by seller dominance in the market.
A run day
An up run day occurs when the true high of the run day surpasses the
true high for the past N days, and when the true low is less than the
minimum true low on the following N days. A down run day is simply the
mirror image of an up run day
Run days can be thought of as a trend-following indicator in the
sense that they can only be identified N days after the trend has past.
As a result, they may not be ideal for forecasting direction, but can
be used as confirmation that a clear trend has in fact manifested
itself.
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