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

To: sean sanders who wrote (19130)	7/2/1999 8:02:00 AM
From: donald sew	Respond to of 99985

Sean, >>> I find a hanging man to be one of the most misrepresented candle patterns. At least in my experience ... <<< You make a very valid point. I mainly only trade indices and not stocks, mainly because my TA system works much better on an index than a stock. Candlesticks are part of my analysis and just the candlesticks works much better on an index than a stock. Also I never use any single technical indicator by itself, so I do not rely just on candlesticks. However candlesticks by themselves specificly on indices, not stocks, have good merit. seeya

To: sean sanders who wrote (19130)	7/2/1999 10:19:00 AM
From: Casaubon	Read Replies (1) \| Respond to of 99985

The implication of your post is that a hanging man candle was the signal for a downturn in a market. That is an incorrect assumption. In a rising trend, a hanging man candlestick can forewarn of a change in trend. Thus, it does not forecast a downturn; it could portend a sideways consolidation. The most salient feature I have learned about candlesticks is that reversal candlesticks imply an end to the old trend and a beginning of a new trend. That is all!