The Candlestick Patterns (1) -- with volume and RSI divergence

   

Candlestick patterns are useful ways to analyze the stock charts.

Candlestick patterns with moving average and RSI analysis.

Tips:

• Nov 15 2012, stock price hit 200 ma, possible bounce back.
• RSI and price have divergence.
• Oct 25 2012 RSI below 30, hit a oversold. This can be treated a very good basepoint. Any new low point of RSI in the future can be compared with this basepoint to see if they have divergence with price.
• Nov 15 2012, a medium green bar with the volume a little up.
• The next three days, price keeps going up and the volume not go up but go down a little.
• This a long hint by this candlestick volume combination.
• Why? The market mind set can be translated like this. The buyers enter, put a little more money to buy, and the next three days, buyers keep buying, but not too loud. At the same time, no sellers sell a lot. The stock can use very little volume to reach a lot higher. Means buyers are at control.

• The similar situation of the stock also is on Dec 31 2012

• Apr 11 2014, this stock hit another RSI regular divergence, after a RSI below 30.  The previous time is 2012, so it doesnt apear very often.
• Then the price goes up for a range.