Volume and Candlesticks
Volume First
I have run literally thousands of simulations and trading strategies and have never, ever found volume to be of any leading significance. I periodically set the neural net to determine the effect of volume on future price - even to one day ahead, and have found no coorelation.
The only exception to this is that a stock that appreciates in price b 15% with a accompanying 15% in volume is a prime candidate for a move on the following day. the onlyu caveat is that if you screen for this, you will find thousands of picks, so that really doesn't narrow the field any. A simplemoving average crossover of 3 and 7 days gives a much better reduction.
The one comment you made I would like to edit:
"After the narrow range, it breaks out, as volume picks up."
Change to:
"After the narrow range, it MAY break out, AND volume picks up.
Now, there are occasions when I find huge volume spikes beneficial - particularly for fund purchases, which generally bring some 5-10% gain over the following week.
Candlesticks:
There isn't an "upside down candle". Up to yesterday, that pattern is still just a continuation of the Three White Soldiers (you discount the first day of the four). Today's action has brought us what is known as a Bullish Window - and this is usually a very good thing. It is formed with a gap, and the last times it occurred were on Oct 12, June 8, and before that on March 13. Prior to that one occurred on Feb 12, but it was preceeded by a Dark Cloud Cover and a Bullish Harami Cross. What usually happens is that the price of the ticker will rise in the next 1 -2 weeks. With IFMX, However, it had one heck of a run up and may bedue some profit taking for the rest of this week before it may continue up. If it opens down tiomorrow and continues down, one should exit and reenter at thelow.
lastshadow |
