Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: horsegirl48 who wrote (29121)	9/6/2000 9:18:44 AM
From: donald sew	Read Replies (2) \| Respond to of 42787

SEPT 6 INDEX UPDATE ---------------------- Short-term technical readings: DOW - upper midrange SPX - midrange OEX - midrange NAZ - midrange NDX - midrange VIX - overbought(inverse to market) PUT:CALL - .48 With last weeks bullishness in the market, I felt that the forthcoming short-term pullback would be weak, but now Im suspecting that this pullback could be stronger than expected in the NAZ. The NAZ has strong horizontal support around 3800 and the 50 day and 200 day moving averages are also in that region. I feel that the 3800 region should hold if it gets that low. Prior to yesterday, I felt that a pullback for the NAZ may only be to the 4000 region, but now 3800 is possible. Yesterday the NAZ had an ABONDONED BABY, and the NDX had a EVENING STAR DOJI. These formations are similar and both are significant candlestic reversal signals with strong reliability. Another important issue that occured yesterday was the VIX breaking out of the WEDGE to the upside which implies bearishness for the market. Recently there has been discussion of the various BEARISH WEDGES. NDX closed at the lower trendline of the WEDGE. The SPX and OEX also closed at the lower trendline of the WEDGE, but they did break below it on a intraday basis. So we need to see follow-thru to the downside to confirm the break. There is a possibility that we may see a set-up for a 3-DAY PATTERN today for the NAZ, so if there is no strong follow-thru today where the NAZ closes slightly up or flat, dont get overly confident that the bottom of this short-term pullback is set. The PUT:CALL RATIO was only .48, which implies that there is still a bit of complacency. From a subjective position, there was really so much talk about the immediate rally after LABOR DAY. Hey, Im not saying that a rally cant happen today, its less likely though, but it could still happen. Regardless of what happens from here on, there was no strong rally yesterday which the media/so many were expecting. Just an example of the contrarian position where the market does not alway do what most expect. Again, Im not expecting a huge selloff right now, but just normal in size rather than weak.

To: horsegirl48 who wrote (29121)	9/6/2000 9:23:37 AM
From: donald sew	Read Replies (1) \| Respond to of 42787

Horsegirl, >>>> can you give the history of the candlestick charting. When did this begin being used, etc <<<< litwick.com >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Although candlestick charts are nearly identical to typical Western bar charts, there is one important distinction: candlestick charts are far more dramatic in their presentation. Instead of the standard high-to-low vertical lines accompanied by horizontal ticks that identify the day's open and close, candlestick charts employ two-dimensional bodies to depict the open-to-close trading range and upper and lower stems (or shadows) to mark the day's high and low. For over a century, the Far Eastern traders have used candlestick charts to track market activity. With the huge set of market data, Eastern analysts have identified a number of patterns that, with differing degrees of reliability, may accurately determine the future short-term trend for a particular investment. These patterns (or indicators) are the premise for successful candlestick chart analysis. The theory, tested over the decades, is that candlestick charts can be effective in revealing the psychology of the market at a certain point in time. On occasion, a chart for a specific investment may meet the criterion for a candlestick indicator. These are the events investors are most interested in as they can decode the emotion surrounding an investment. Knowing this means that for short-term, an investor can make confident decisions about buying, selling, or holding an investment. WHERE DID CANDLESTICK CHARTS COME FROM? Analysis based on trends in market psychology has its roots in Japanese rice trading in the 1700's. One of the most famous traders of the day, a man named Homma, discovered that studying the emotions of a market could be very useful in determining future trends. Although it is not known whether Homma can be credited with developing candlestick charts as we know them today, it is under the same principles that led to their evolution and wide-spread acceptance among Eastern traders since the late 1800's. Candlestick charts have been a commonly practiced analysis technique ever since, and it is quite clear that Eastern traders have long given great weight to how market psychology effects future trading. Candlestick charts have only recently been introduced to Western traders with much thanks to Gregory L. Morris and Steve Nison. However, since the early 90's its support has been captivating. The word has spread. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<