The NASDAQ Composite Index:NASDAQ daily price chart, 1 25 20. stockcharts.comI’ve circled the “bearish engulfing” candlestick pattern in red — you can see how it’s actually engulfed the price levels of the Thursday and Wednesday trading session. This NASDAQ component looks a little different, but not much:Apple daily price chart, 1 25 20. stockcharts.comApple did not form a “bearish engulfing” price pattern on Friday. You can see how the relative strength indicator (RSI) above the price chart — and the moving average convergence/divergence indicator (MACD) below the chart — are both diverging from price. Here’s the daily price chart of another big component, Alphabet:Alphabet daily price chart, 1 25 20. stockchart.comThis looks a lot like the Microsoft chart — at least, looking at the pattern from this week. Price chart analysis like this allows the investor to consider only the patterns of buying and selling.

Source: Forbes January 25, 2020 17:48 UTC