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Can I get some help interpreting 2 charts with big volume and wicks?
I have been considering a couple of stocks and learning through studying their charts. I was looking at the black candle with big volume but also a tall wick and wondering whether that was a good sign or a bad sign. Then I looked at a similar formation (although the candle is hollow, not black) on MTW, which was followed with a sizable down move the next day. So, my first question is whether I should expect a down move from TRN tomorrow?
My second question (asked Sunday night) is whether anybody can give me an idea of what the huge move (volume and price) in MTW on Friday (big gap up with some follow through but still a wick at the top) might indicate. I am not invested in either one of these stocks, just trying to learn from them. Here are links to the charts. I hope the work well in this forum. I have them in portrait format to allow 4 charts on 2 monitors. http://stockcharts.com/h-sc/ui?s=MTW&p=D&yr=0&mn=4&dy=0&id=p15468741476&a=355517737http://stockcharts.com/h-sc/ui?s=TRN&p=D&yr=0&mn=4&dy=0&id=p89881098191&a=355616391
MTW: I don't know how to play gaps, but all indicators show extreme values. There is a wick of equal lengths on each side.
There are quite a few other possibilities and stockcharts has a good article on gaps in their chart school that is worth reading, here is the link: