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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (67166)	1/18/2001 7:53:22 PM
From: KymarFye	Respond to of 99985

LG: I do read candlesticks, and have found them somewhat useful - as recently on the Nasdaq - but some limited statistical testing of candlestick patterns that I've seen (difficult to perform satisfactorily because of elements of subjectivity and "fuzzy" logic) has led me to treat them with some skepticism, and I rarely trade on them unless they conform with other indicators. More generally, the patterns tend to reflect common sense. Thus, in the case of the Value Line Geometric (see also my second response to Haim), an unbroken run-up lasting several sessions appears to have topped out in two sessions: Yesterday, the bulls were unable for the first time in a while to close the market at or near its highs. Today, they closed it at the highs, but only after spending a good part of the day underwater (thus the "hanging man"). It also appeared that they were unable to re-test yesterday's high, or the intermediate top of some weeks ago. The overall impression suggests the "market" (i.e., the cap-weighted "whole") may be vulnerable, and at least suggests diminution of the trend (that's obvious), but it won't be a complete signal until and unless tomorrow's session has in some way confirmed it.