On the other hand, negative price action on the next day is seen as
a more bearish signal.
The more times this occurs
the more bearish the signal is believed to be.
Not exact matches
And while BAML is quick to note that this isn't an outwardly
bearish signal, it does mark a shift towards a
more cautious overall stance for investors as they position for lower yields (see chart below).
For obvious reasons, this
bearish reversal
signal is considered to be slightly
more bearish if the real body is also
bearish.
In this context, it's
more of a sign of indecision than a
bearish signal.
Therefore, a relatively large shooting star candlestick is a
more significant
bearish signal than a relatively small one.
However, if you use this
signal in conjunction with a confirming candle (like I'm going to show you below), it is actually slightly
more bullish, in my opinion, when the real body is
bearish.
Indicator
Signal Closing Price above / below 50 Day Moving Average
Bearish Closing Price above / below 200 Day Moving Average Bullish... Read
more
Indicator
Signal Closing Price above / below 50 Day Moving Average
Bearish Closing Price above / below 200 Day Moving Average... Read
more
This is
more often a bullish sign than a
bearish sign because there are too many false bear
signals.
The relative strength index (RSI) fell below 50.00 into
bearish territory yesterday, possibly
signaling more losses ahead.
«Since then, however, the
signals have become notably
more bearish, and there is now a good chance that commercial real estate prices will be lower within the next 12 months,» McCulloch added.
Real estate research and advisory firm Green Street Advisors says the end is not far off, noting market
signals that «have become notably
more bearish» and calling for commercial property values to drift lower over the course of 2016.
«So, the
signals that we see for real estate values are getting
more bearish.»