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Strategies & Market Trends : Swingtrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: bobby is sleepless in seattle who wrote (40)	10/4/1999 10:12:00 PM
From: OZ	Respond to of 551

Bobby, The previous doji setups on this chart are somewhat sloppy. The setup Brandon is showing you is much better in that it 1. is not distorted by gaps 2. is right at the resistance of a moving average What is significant of a doji is that several days of contratrend momentum is offset by a truce between the bulls and the bears. This in itself is a change. There is no guarantee of course. That is why you do not enter the position until it takes out the previous days high for a long and low for a short. You need to get the STEVE NISON candlestick book. It is a must have for any technical trader. OZ

To: bobby is sleepless in seattle who wrote (40)	10/4/1999 10:28:00 PM
From: Brandon	Read Replies (2) \| Respond to of 551

Bobby, I tend to only use the doji as a short signal as it has been my experience they work better at a top then at a bottom. A doji is significant in that it shows a day in which the buyers could not continue driving the stock higher at a top, or lower in the case of a bottom. It simply shows the possibility that the current short term buying (or selling) may be drying up. This is especially powerful when combined with the core setup. I would never short a stock with a doji being the only reason for doing so as Im sure that is a losing proposition over time, however when used in combinations it can be a very powerful indicator. Brandon www.mtrader.com/swingtrade