SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: MonsieurGonzo who wrote (667)11/20/1997 10:07:00 PM
From: Esteban  Read Replies (1) of 1589
 
Steve,

>>I kinda doubt that {grin} Breaking trend lines usually results in some sort of retracement - note the red candle on Tuesday after we busted through the first DownTrend line (around DJIA 7700).<<

And notice that the Tuesday candle was an engulfing candle. If you didn't wait for confirmation .... WHIPSAW.... Since Monday gapped and made a star and was at horizontal resistance at 7800 it would have been tempting to sell the Tuesday engulfing pattern on the close. That's part of the problem with continuation patterns. Sometimes their makeup begins with a reversal pattern, like when a harami turns into a low or high priced gapping play.

I find windows (gaps) confusing and I know they are a major part of candle analysis. Lots of reversals are based on gaps, and so are some continuations. When the patterns don't develop in a textbooks manner (most of the time) it's hard to judge reversal or continuation.

Esteban
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News