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Strategies & Market Trends : Chart Formations -- Ignore unavailable to you. Want to Upgrade?

To: Mel Long who wrote (166)	7/13/1999 11:28:00 AM
From: Casaubon	Respond to of 967

yes. I do use concurrent indicators and the daily stochastics is at 87. The weekly is just about to reach the 80 level. So, I'm inclined to believe the stock will back pedal some. I sold a portion of my holdings without getting confirmation as I'm trying to get to cash before the market starts getting the Y2K Flu.

To: Mel Long who wrote (166)	7/13/1999 4:53:00 PM
From: sean sanders	Read Replies (1) \| Respond to of 967

Mel Long, I think it might depend on what you look at. I have murphy's book too and I think his point of talking about using stochastics or RSI or the MACD was to give a person 'one more card' to his playing deck (T.A. analysis). So if you use more then just candles your T.A. should be more accurate in 'fortelling' the future. So if you used the most 'reliable' candles with conjuction with stochs in either direction (ie shooting star with above 80 stochs) then Murphy is suggesting your outcome for success at playing this (form the short side) would be greater. did that make sense? btw that is what I got from murphy's book not necessarily my opinion on the matter. Sean

To: Mel Long who wrote (166)	7/13/1999 5:39:00 PM
From: keith massey	Read Replies (2) \| Respond to of 967

I read somewhere (I think John Murphy's book) that candlestick patterns are only reliable when the %D in stochastics is above 80 or below 20. Just wondered if anyone concurred. I definitely don't agree with that one. I really liked Murphy's book but I think he might have been off a little if he said that. It is more important that the candlesticks occur during a trend. Stochastics may be at 80 or 20 but they also might not be depending on your settings, time frame, etc. It is more important that you use candlesticks with other indicators to be on the safe side. These other indicators/signals might be Stoch. or they might be support/resistance or another indicator/signals of you choice. In Nison classic on Candlesticks he mentioned that candlesticks were far more powerful IF used with Stoch but didn't say they had to be used with it. Best Regards KEITH