I found the CIS candle ref. It was the Morris [and Nilson's 1st] books that John recommended.
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#: 730458 S9/Computer Corner
14-Jun-95 08:38:20
Sb: #729680-Metastock vs. others
Fm: John A. Yurko 73304,202
To: Paul I. Munves 70254,755
My judgment on Nison's second book could be in error, but even though I've browsed it several times in the bookstores, I couldn't get myself to buy it.
This despite the fact that his first book is very good. I guess I haven't been able to bite on it because IMO there just wasn't anything substantively different in it compared to his first book.
I own Greg Morris' book, and I like it very much, maybe even more than
Nison's first book. Then again, it's more organized than Nison's first
book, not that Nison's is _dis_organized.
There were several reasons why I own Morris' CandlePower:
1. The organized way he describes the various Candlestick patterns,
and includes some he devised. His psychological interpretation of each Candlestick pattern is also very well done .Also, the way he compares patterns - he gets you thinking about the relationships between them, which helps you organize your thoughts even better than Nison did.
2. What is probably the greatest strength in Morris' book though, is
his attempt to quantify the validity of the various (many) Candlestick patterns. He asserts that they are a short-term predictive TA tool, i.e., useful out maybe half a dozen bars into the future. He explains in both verbal and quantitative terms behind Candlestick pattern identification as well as the reliability of their recognition, and the assumptions behind that process (VERY important!). He then presents the results of the rather extensive testing that he has done on Candlesticks performance, for both stocks and futures. THAT was the driving force behind my buying his book, as
I had intentions of doing that myself, and had already started that
process, in fact.
3. His filtering CandleSticks with other more 'traditional' TA tools
was better done than Nison's, due to a more (although not enough IMO) quantitative approach to the subject. Of course, he mentions his CandlePower software from time to time in the book, and his charts were built using it as I recall.
That's about it. John |
