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Strategies & Market Trends : Ahh Canada - 2 out of 3 ain't bad -- Ignore unavailable to you. Want to Upgrade?

To: Cush who wrote (2044)	4/11/2001 8:53:27 PM
From: Shack	Read Replies (1) \| Respond to of 5144

Shaw/Cush, just a comment on candlesticks, THEY NEED TO BE CONFIRMED. Once they are confirmed, they are the single most reliable tool I have found. Lots of POTENTIALLY bearish patterns today but tomorrow will be key. The COMPQ put in a potentially bearish evening star which I believe will be confirmed tomorrow. I understand your skepticism Cush. These patterns only work when confirmed and used in the correct context: The most abused candlestick pattern has been the "hammer bottom" which desperately needs to be confirmed when it appears, especially in bear markets. Same as the bearish shooting star in bull markets needs to be confirmed. Another problem I find folks have with the sticks is they don't realize that they are best served as trend reversal patterns. A bearish reversal candle within a downtrend means very little for instance. Wrong context. Lastly, the trend which they often kick off can be stopped as soon as a day later. My road map has the Nasdaq evening star being confirmed tomorrow followed by a few more days of selling to close a gap or two, but then I expect a rally and will be looking for a bullish candlestick pattern to form in the middle of next week or towards the end. Options expiration may screw things up though.

To: Cush who wrote (2044)	4/11/2001 10:03:18 PM
From: Shaw	Respond to of 5144

Hi Cush, I rarely scan for them but with this particular pattern I find I notice it happening when I am DT'ing something and watching it close. Seems to happen off news. Stock has a big up day (or days) and then you get the sickest looking MD and bidwhacking one day. Invariably when you check the candle, you get the DSG chart from today. They usually trade down the next day and possibly days. I putted DSG today so w/ my luck it'll rise like the wind <g>. I have just read the primers on the net on candlesticks so I can not recommend any books. I find candlesticks very iformative to look at after I am flummoxed at a days trading on a particular issue (for clues). I am going to check out the engulfing patterns. I see from your scan link you gave me we are able to check their calls and I have been doing that. May look into it more this weekend.