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Actionable news in MS: MORGAN STANLEY,

Bears Rule These Morgan Stanley (MS) Stock Charts

NEW YORK (TheStreet) -- There are many analysts on Wall Street who favor various financial firms and overweight the sector in their models, but one institution that was upgraded today still has a disconcerting chart: Action Alerts PLUS holding Morgan Stanley (MS - Get Report) .

Japanese candlesticks are the oldest charting technique, dating back to around the 1740s in Japan. They were unknown to U.S. traders until the 1990s, when my friend Steve Nison unveiled them to the West.

Candles are popular with traders and chartists because they are "more colorful" and are quicker turning than other charts. Reversals happen in one, two or three sessions compared to double tops and head-and-shoulder tops, which can take months.

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In this weekly candlestick chart, above, we can see several red candles. The "body" of the candle is red because prices closed the week lower than where they opened on Monday.

Japanese traders and analysts are most concerned with the relationship between the open and the close as it represents the battle between bulls and bears and is also called the "essence of the day." The red candles tell us that the bears have been in control.

With candlestick charts, one can add or use any Western technique...


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