Esteban; RE:"Intra-Day Candlesticks..."
How has the pattern reliability been working out?
Superbly, Esteban ! I have been amazed. What I've learned so far:
(1) You can look at 1-min/5-min/10-min/15-min/30-min/60-min candles, and they all say the same thing (regarding turning points). Some are more clear that others - for example, a bullish engulfing pattern consisting of two candles on a 5-minute chart might appear more clearly as a Hammer on the 10- or 15-minute chart. It's useful to flip around between these time scales to see what's what. In general, I watch 5-minute candles, switching to 15-minute candles to see a different perspective.
(2) Just as Weekly charts give stronger indications than Daily charts do, hourly-candlesticks are more "powerful" than 5-minute candles. The resulting moves (predicted) have greater extent for longer duration candlesticks.
(3) Reading intra-day candles (here's the coolest candlestick chart generator of all time...
quote.com
...which shows the candles as they are being formed), has really helped me to interpret Daily and Weekly candlesticks.
Morris says that intraday candles are not reliable because
there is no definite open or close.
Well, I disagree with Morris (and so does Nison). I think that the Japanese master, Homma started with intra-day candlesticks in the rice market, n'est-ce pas ?
IMHO, Candlesticks follow "fractal" logic - ie., a coastline has the same pattern when viewed on the beach or from up in space - scale doesn't matter - so candlesticks are just as valid whether there is a set OPEN or CLOSE "event", or any arbitrary time slice in - between.
But hey - don't listen to me! Fire up that chart generator and look at the OEX or INDU indices (REAL-TIME) and YOU TELL ME if you see all kinds of good stuff in those candlesticks, Esteban! (^_^)
-Steve |
