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

To: Susan G who wrote (23594)	11/7/2001 10:57:53 PM
From: Atin	Read Replies (1) \| Respond to of 52237

Here's how I read candles - the market is a war between bulls and bears. Each day is a battle, with lots of skirmishes intraday (fundamentals like earnings, interest rates etc are like supplies - sometimes the bulls have better provisions and sometimes the bears do - and sometimes even the side that don't have enough provisions wins the battle a few days in a row due to pure craziness!). A candle like today's - that long tail above was the bulls charging into the bears territory and getting beaten back all the way down to where they started from. What does this mean to me - it means that bulls are willing to take the fight to the bears, but the bears won today by beating back the attack all the way to the bulls territory. Didn't move past that bull boundary though and did lose a little ground to the bulls even today, so the bulls haven't given up either. The bears have been losing battles over the last few days, and have their backs to the wall (I use my trading bands as the "walls"). So this beating back of the bull attack after losing every day for the last few days says to me that the bears are picking strength - but maybe it is just desperation and the bulls are going to win through to the next bear stronghold at the 200 dma. I read all candles and patterns this way - I have too much trouble keeping the names straight, much easier for me to just look and try to understand what the bulls and bears war is doing and what happened in battle today. Whatever it is, I'm a mercenary. I try to pick the side that is most likely to win in my opinion. I'm not going long here - and have a small short position on now to keep me paying attention. My trading horizon is at most a week, and I find that candles aren't very good at predicting much past that. That's my read anyway and am liable to get my head shot off <g> -Atin

To: Susan G who wrote (23594)	11/8/2001 1:08:31 AM
From: donald sew	Read Replies (2) \| Respond to of 52237

Susan G, >>>> Isn't an inverted hammer bullish and usually seen at the lower end of a trading range? And the bearish version is a shooting star and seen at the tops? <<<<< I never read a textbook on candlestics so here is my understanding of INVERTED HAMMERs. They are reversal signals after a significant rally or significant pullback. A shooting star is a 2 day pattern where a long day is followed by a gap and the second day is a small body/spinning top/doji. In the case of a doji its called a shooting doji star. Here's a basic rule that my granduncle, who used candlestics in trading rice/spices in Asia, taught me. SMALL BODIES, not like mine, are commonly points where there is some sort of indecision, regardless of the size of the shadows. I have no idea if this is in any textbook. The smaller the body the greater the indecision where the DOJI is the highest level of indecision. The other basic rule is that indecision candles are commonly found at reversal point, whether upside or downside reversals. Thats not to say that indecision candles only occur then. Hope that helps explain it.