Candlestick Charting--The unknown indicator Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Candlestick Charting--The unknown indicator

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: HeyRainier who wrote (452)	9/22/1997 12:38:00 AM
From: ftth	of 1589

Rainier: In the volume examples I gave, a couple of the patterns only have 2 consecutive black days (e.g. FLC) prior to the hammer. On relatively long pullbacks (about 4 weeks in this case) that aren't very steep (in this case, more like a loose base), 2 days seems to be sufficient since a lot of the selling has been worked out of the stock, in a slow, methodical manner, over the prior weeks. These cases don't seem to need the "jolt" of 3 consecutive black bodies to have a meaningful reversal following the hammer day. For hammers that occur within 10 trading days (no specific reason for 10--just needed some number to serve as a baseline) of the peak, I try and stick to the 3 minimum, because these need more of a steady shock before they can reverse because they haven't sold off as much or reached any semblance of equilibrium. Am I full of it, or does this make some logical sense to you??? Maybe I'm trying to make something mechanical that can't or shouldn't be made mechanical??? dh

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next