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: MonsieurGonzo who wrote (667)	11/21/1997 1:02:00 AM
From: Esteban	Read Replies (2) of 1589

>>Candlesticks do not inherently indicate the extent of a movement; rather, I am beginning to think that instead of movement, Candlesticks reveal sentiment.<< I agree. The candlesticks provide insight into psychology in a more visual way than standard bar graphs. Certain patterns reveal the psychology, often indecision or waning of enthusiasm. They don't seem to give any indication beyond that. The indecision could amount only to a pause of trend, or the start of a major reversal. I think an important point here is to look beyond the pattern and into the psychology. This can allow you to reverse back quickly if you went with the pattern and you realize that the psychology the pattern depicted is no longer in effect, or to take action on a movement that is not an established candlestick pattern that none the less reveals the same psychology. Example: A Dark Cloud Cover reveals deterioration in enthusiam after a strong open. But if the open was not so strong and opened within the previous day's body and then closed below it (a Tasuki Line) a recognized pattern has not developed, but to me it indicates sentiment at least as bad as the Dark Cloud Cover. So I'm thinking there are lots of variations of the classic patterns that reveal the same psychology. The biggest challenge for me is to learn how to pick the spots where candlestick patterns are most likely to signal something important and avoid being constantly whipsawed. Another is to realize that the trend has deteriorated WITHOUT an actual candle pattern forming, and recognize the deteriorating psychology in it's absence. Steve, thanks for the tip of people to pay attention to for index trading. Esteban

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next