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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Herc who wrote (4280)	9/20/1999 10:35:00 PM
From: OZ	Read Replies (3) \| Respond to of 18137

"I would think that a 5 minute interval is too short to really meaningfully measure investor sentiment with candlesticks." The 5 min candlestick bar is the 44 magnum for the intraday trader. With a good eye and "candlelight" he will shoot ya dead and take all your money while you are left lying in the dark. It is also great for the swing trader as it allows them to tweak their entrance and exits. The first time a larger time frame trader uses it, he has to beware that he does not fall into the trap of letting the faster bars shake him loose. This is in my opinion the biggest problem for the new daytrader. Or rather, the biggest catalyst to emotional reversals. Three down candles mean nothing in the context of a daily bar swing type setup. The minute you rollover the stock will do what it was "supposed to". Almost feels like a conspiracy when it happens. regards, OZ

To: Herc who wrote (4280)	9/21/1999 4:30:00 PM
From: TraderAlan	Read Replies (2) \| Respond to of 18137

Herc, Day traders don't care much about "investor sentiment". 5-min candles are very potent at the right time. The trick is knowing when to ignore them and when they have significance. It's usually a function of position, range and volume (as determined by the T&S, not volume histograms). The biggest confusion for those new to candlesticks is the cut and dried interpretations given by Nison and Morris. Those are useful in the context Teresa provides in her commentaries. But for the shoot-from-the-hip day trader, more important are the classic reversal formations in the next smaller time frame that candles reveal. When you see a long-legged doji on the 5-min, you can be assured that something significant has just occurred on the 1-min bars. That's the value of candles: their ability to visual multiple time frame events in single bars. Alan