Silicon Investor (SI) -- The First Internet Community

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 : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (19129)	7/2/1999 12:38:00 AM
From: sean sanders	Read Replies (2) \| Respond to of 99985

Donald, I find a hanging man to be one of the most misrepresented candle patterns. At least in my experience ... I don't want to count the times I have played a stock using the 'hanging man' candle and then seeing it do something else other then go down. A few years back my mind was conditioned to think 'hanging man' probably go down ... now when I see one I just say to myself hmm interesting (that's because of lot's of lost $$$). anyways ... this doesn't have much to do with the NAZ and SPX etc but I had to get that out of my system ;) want a real life example take a look at IDTI (a stock I am currently in now) yesterday's data might have scared me out before but not now. The hammer is the candle that I still give some decent weight to when I see it. ie when considering one day candle patterns. anyways ... seeyas ;) Sean

To: donald sew who wrote (19129)	7/2/1999 2:07:00 AM
From: Gersh Avery	Read Replies (1) \| Respond to of 99985

Hi don Re hanging man and hammers. One of the main characteristics of these formations is very small, or nonexistent, bodies. These formations are the result of a change in direction during the course of the day. For example, the market has been in a down trend. It opens gap down, trades much lower, reverses mid day, runs up over the open and closes back to about the open. The result would be almost no body at all, a small upper shadow and large lower shadow. If the market were in a up trend then the upper shadow would be longer than the lower. These formations will look the same if they are at the wrong end of a trend, but will probably fail. Think of the market action that would make this type of formation. Say the trend was up. It opens slightly up then drops. It then reverses up into the close to hit near the open. To my mind this would say to me that the bears couldn't put her down. They'll need to try again later. Don't know if this is Kosher Candles but it's what they whisper to me. FWIW Gersh BTW data: On 7/1 the SPX closed just below the upper black fork tine. This tine should provide resistance and may send the index back down. This would reestablish the upper channel. Globex opening trigger values: Buy trigger : 210 (1394.2) Sell trigger : -210 (1390) Prem values for the day: buy trigger 13.25 fair value 11.15 sell trigger 9.05 Black fork tines: Upper : 1382.22 (1.27) Mid : 1346.65 (-34.3) Lower : 1311.08 (-69.87) INTC calls are calling me again .... on the pull back, of course.