These candlestick patterns on indices indicate that today, May 7th, will be a bullish day. Candlestick patterns are leading indicators and Gail Mercer, founder of TradersHelpDesk, has presented many times on critical price bar patterns that all traders should know.
Candlestick Patterns on Indices – Overview
In this video, Gail reviews the bullish three-bar pivot pattern that has formed on the indices including:
- e-mini S&P 500
- e-mini Dow Jones
- e-mini Nasdaq
- e-mini Russell 2000
When the bullish three-bar pivot forms, typical price behavior is for the next bar to also be bullish. This indicates that today will be a bullish day and the indices may continue up. The favored indices would be the e-mini S&P 500 and the e-mini Russell 2000 because the pivot bar formation occurs at an area that is acting as support as the ATR is already below price. However, the e-mini Dow and e-mini Nasdaq must break through the area of resistance because the ATR is above price.