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

To: Casaubon who wrote (19157)	7/2/1999 7:31:00 PM
From: sean sanders	Read Replies (1) \| Respond to of 99985

Casaubon, You mention this "a hanging man candlestick can forewarn of a change in trend. Thus, it does not forecast a downturn; it could portend a sideways consolidation." ... errr I wasn't trying to say that hanging man means downturn but that it seems lots of people including myself at one time gave the hanging man much credence in forcasting a future downturn. Morris's candle book has the hanging man under candle reversal section ... he doesn't mention sidways consolidation (where to you get that definition from ie experience?). I consider myself a shorter term trader (I use daily charts), so 2 weeks is a long time for me to hold a trade; so if I see a hanging man I used to give that pattern lots of weight because (as suggested) wait for confermation and I really wouldn't want to confirm with a large black candle. So often I would sell then and then see the price stay there for a day or two or then just keep going up. So you say reversal candles imply end of old trend beginning of new one ... is that meaning we are in up trend now then see a hanging man so ie will be a new trend ie which ever? up sideways? and what is a sideways trend? In such a short time frame as 2 weeks there always seems to be an up in down ; unless almost no movement. Sean