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To: Kavika who wrote (91142)	3/31/2000 9:25:00 PM
From: Long John	Read Replies (1) \| Respond to of 120523

Kavika, Jenna posted this on candlesticks the other day: Message 13279521 Also look at equis.com John

To: Kavika who wrote (91142)	3/31/2000 11:10:00 PM
From: Scrumpy	Read Replies (2) \| Respond to of 120523

Look no further than Nison's "Japanese Candlestick Charting Techniques". None better. And don't jump the gun with his second book "Beyond Candlesticks". It's not as coherent as the first.

To: Kavika who wrote (91142)	4/1/2000 2:06:00 AM
From: Scrumpy	Read Replies (1) \| Respond to of 120523

Example of Nison's Candlestick Discussions (Scrumpy may be infringing...) Candlesticks really shouldn't be over-simplified. They have been developed over hundreds of years with particular emphasis placed on the psychology behind the pattern formation and [human] recollection of prior-day events, not just the fact that a simple pattern manifested. So, it is not enough to "know your basic patterns". At first, I used to hunt for "simple" patterns, but out of context, they are meaningless. Nison gives clear, concise explanations on why certain patterns are significant, and when to tell when they aren't. I've relied more on candlesticks lately to determine short-term price direction, but I strongly believe they should be used with volume, momentum, and stochastic technical analysis. Remember, candlesticks show relative price , not volume. They were also formulated before daytraders existed, so keep this in mind during the 3:00 sell-off. Nison's introduction to hammer and hanging-man formations... Context: Reversals 1. The real body (hammer or head) is at the upper end of the trading range. Color of the body is not important. 2. A long lower shadow should be twice the height of the real body 3. It should have no, or a very short upper shadow ...the longer the lower shadow (the long tail), the shorter the upper shadow and the smaller the real body, the more meaningful the bullish hammer or bearish hanging man. If a hammer has a white (positve) real body, and takes place after a continuation of down days, it means the market sold off sharply during the session and then bounced back to close at, or near, the session's high. Such behavior could have bullish ramifications. If a hanging man has a black (negative) real body at the top of a trend, it signals weakened buying since the close could not reach the opening price level. This could have potentially bearish implications, since bearish selling and/or weak buying prevailed. It is especially important to wait for bearish confirmation with a hanging man. The logic for this has to do with how the hanging man is generated. Usually in this kind of scenario the market is full of bullish energy. ....if the market opens lower the next day, those who bought at the opening or close of the previous day are now left "hanging" with a losing position. Thus the general principle for the hanging man; the greater the down gap between the real body of the hanging-man day and the opening of the next day, the more likely the hanging man will be a top, or reversal...