Old Stuff Wednesday, page-2

Tuesday Evening Liqueurs.1 March, 2016.

Today's action in the Australian market was positive. It was choppy in the morning session, but the afternoon session was very bullish, rising from above par to be up +0.85%. Volume continued its recent strength, once again >1 Billion on the XAO.

Here's a Heiken-Ashi Chart for the XJO:



The last two candles on the H-A Chart are doji candles - which suggest a possible trend change.

I've taken the unusual action of overlaying the short term Stochastic on the long term Stochastic in the second panel under the chart.
This may look confusing. OK. But it provides a wealth of possible evidence if you can bring yourself to it.

The long term Stochastic can be taken as the current dominant trend. If it is rising, then the long term trend is rising. The short term Stochastic represents short term action within the trend.

Currently the long term Stochastic (50.10.10) is rising, but the shorter term Stochastic (14.3.5) is falling.

This suggests that we're in a short term pull-back. Buy the Dip (so long as the long term Stochastic is rising.)

If the H-A Candle tomorrow changes to a solid yellow candle with no lower tail, we should be off to the races.

RB.