April 10th and 11th formed a Tweezer Bottom when the same low was tested twice on back-to-back sessions. Tweezer Tops and Tweezer Bottoms are minor reversal signals that gain further imortance if they also form another candle pattern such as a Harami Cross. In this case the day following the Tweezer Bottom was a Bullish Belthold Line adding strength to the reversal signal and telling us the trend was now higher.
The April 17th and 19th sessions formed a Tweezer Top. Again, these are minor reversal signals. The weakness of this signal was hinted at by the long shadows under the real body red candles (black) following the reversal.
The long upper shadow on the green (white) candle as the DJIA approached prior resistance on May 1st signaled the trend may stall. A strengthening of this reversal signal was given the next day when a Hanging Man formed that was also a Harami. Hanging Man candles require confirmation which was given the following day when the DJIA closed well below the close of the Hanging Man. These three signals confirmed a top which was further bolstered with a Bearish Belthold Line the next day.
On June 6th a Tower Bottom was confirmed with the long green candle Bullish Belthold Line closing above the long red candle. Tower Bottoms by definition require small bodied candles between the two towers. These small bodied candles preceding the Bullish Belthold Line signaled a dampening of the downward momentum which was followed by confirmation in the form of the Bullish Belthold confirming the Tower Bottom reversal.
The long upper shadow of the green candle on June 19th was followed by a near-doji Harami signaling neutrality in the trend. Since this Harami was very close to a Hanging Man we needed confirmation in the form of a lower close the following day. That confirmation came in the form of a long red Bearish Belthold Line signaling the short run trend was lower.
July 5th witnessed yet another Harami (similar to Inside Day on barchart) signaling the trend was losing its breath. Confirmation came the following day with a close below the Harami.
The long lower shadow of the red candle above the MA200 and above the prior pivot point signaled the market was respecting this area as support. Though the red candle that formed on July 12th didn't fit the text book definition of a Hammer it had all the qualities of a bottom reversal. All that was needed was a long green (white) candle to follow and close above the Hammer's close and we witnessed just such a thing the following session in the form of a Bullish Belthold Line. Further support for the turn was added by the fact the Bullish Belthold missed qualifying as an Bullish Engulfing Pattern (Outside Day in bar charts) by two points at the open.
This is virtually a Bearish Engulfing Day.
More or less a Rising Three Methods pattern signaling a continuation of the bull trend.
The narrow bodied green (white) candle on Aug 17th followed by a Hanging Man Doji Harami at prior levels of resistance should have sounded the alarm bells that a reversal was imminent. Confirmation was received the following day when the long upper shadow and a lower close confirmed bullish momentum was exhausted.