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To: Warpfactor who wrote (5403)	6/23/2001 7:05:14 AM
From: aerosappy	Respond to of 23153

Warpfactor, According to this section from StockCharts.com's Introduction to Candlesticks, the KEG doji may not indicate a reversal: <The reversal implications of a dragon fly doji depend on previous price action and future confirmation. The long lower shadow provides evidence of buying pressure, but the low indicates that plenty of sellers still loom. After a long downtrend, long black candlestick or at support, a dragon fly doji could signal a potential bullish reversal or bottom. After a long uptrend, long white candlestick or at resistance, the long lower shadow could foreshadow a potential bearish reversal or top. Bearish or bullish confirmation is required for both situations.>

To: Warpfactor who wrote (5403)	6/23/2001 8:34:40 AM
From: chowder	Respond to of 23153

Warp, you didn't do anything wrong. You didn't get your reversal because there was a "catalyst" to drive the stock down. That catalyst was the negative inventory reports and the selloff within the sector that followed it. You want to look for candlestick patterns where the indicators are in your favor. You saw the indicators with KEG. All of them were down. Now take a look at AXP. stockcharts.com[h,a]dhclyimy[pc25!c50!c200!f][vc60][iut!Ub14!Ua12,26,9!Lk14!Ll14!Lc20!Lh14,3!Lg] I mentioned this company earlier in the week when the trend reversal pattern appeared. Notice how all of the indicators were turning up when AXP flashed its trend reversal pattern. I also mentioned the financial sector was on the rise. AXP's catalyst was the overall sector improving, therefore I was able to time the rise. When these trend reversal patterns appear, the advantage goes against the trend unless there's a catalyst to keep the original trend in place. dabum