Tom, if you are interested in daytrading futures, it might be worth your while to take a look into the added perspective that candlestick charting provides, particularly since it has such a focus on the trading psychology of any given day, and how it relates to the market's near term movements.
If I may, here is a site on SI that focuses on candlestick charting:
exchange2000.com
After an incubation period for the thread, I moved on, but a certain MonsieurGonzo has established himself there, and since he appears to have experience with both futures and candlesticks, he might be a good source to establish communications with.
As far as the candlestick question goes, there are two colors that a candlestick chart shows: Black (or filled) and White (or empty). Black bodies are down days (and hence are bearish), and White bodies are Up days (and so are bullish). So that comment on the Black bodies outnumbering the White bodies was perhaps implying that the chart had an inherent bearishness to it (not entirely useful because it does not take into consideration the extent of the up versus down movements).
There is a certain psychology that makes itself evident in the day to day trading patterns of various issues, whether it be futures, equities, or whatever. From an experienced candlestick reader, one supposedly can look at a daily candlestick, and be able to see immediately the developing psychology of the traders involved for that trading day. Quite useful as a short term forecasting tool, particularly when combined with volume and other technical readings, but one should not place total reliance on the signals of just one candle. As always, it should be added to one's arsenal of technical and fundamental tools for a more complete perspective.
By the way, this is a good site that explains a fair number of candlestick chart patterns:
scifi.co.uk
Hope this helped out.
Regards,
Rainier |
