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Strategies & Market Trends : Candlestick Charting--The unknown indicator -- Ignore unavailable to you. Want to Upgrade?

To: HeyRainier who wrote (604)	10/28/1997 11:15:00 PM
From: Sherman Chen	Respond to of 1589

Check out XLNX and QCOM too.

To: HeyRainier who wrote (604)	10/28/1997 11:39:00 PM
From: Dana Johnson	Respond to of 1589

RETX had a piercing line today.

To: HeyRainier who wrote (604)	10/29/1997 9:13:00 PM
From: ftth	Read Replies (1) \| Respond to of 1589

About the tons of Bullish engulfing patterns: I sort of view it as "yep ther're everywhere, but that's what I would expect under the circumstances--it's market-driven, not individual stock-driven." Since I view candles as a means of determining short-term sentiment for trading purposes on individual stocks, when the predominant force behind virtually all stock moves currently is market-driven, I don't believe that candles are very useful for selecting individual stocks at this juncture. I do believe, however, that candles are very useful for monitoring the broader indexes, and determining the proper re-entry point (along with other measures of the market's internal haelth). Just as candles and the other "internal" measures guided me to reallocate to a larger cash position over the past couple weeks, they will also guide me to either spoon-feed or pour my cash back in at some point in the future. Since historically, almost all market corrections were preceeded by weakening internals, and have almost always been followed by a bounce off the lows relatively soon after the plunge, I'm stickin' to my guns and assuming that we will follow the historical pattern of another selloff (I wouldn't even dare try to predict the magnitude of it), and the behavior of the market during that selloff sets the tone for what follows after that. BUT, I always try to have a "plan B" in case the historical precedent doesn't appear to be holding. Since right now we're following "plan A" almost to the letter, and "plan B" can't activate until next week (3 points determine a trend, 4 points confirm a trend), I'm staying on the sidelines. Try to find any examples of a stock that took a large 1 day plunge and then immediately reversed and returned back to the levels it was trading at prior to the plunge, shortly thereafter. It doesn't really even matter if the plunge was due to a rumor that turned out to be false--in almost every case, the equilibrium that the stock was in prior to the plunge has been severely damaged, and the stock must "heal" and regain an equilibrium at the new lower level (i.e. consolidation) before it will show any consistent pattern of strength again. I'm always on the look-out for the rare case where that historical and logical pattern doesn't hold, but that pattern is so statistically overwhelming--regardless of whether there was a bona-fide reason for the plunge or not--and over all types of stocks and time periods that I expect "plan A" will be the resulting pattern. Since I'm following 2 differnt scenarios, about the only thing that could happen which would screw me is if the market just has a slow, steady rise from its current levels. Although highly unlikely from both a historical and logical standpoint, I'll cover this case by setting a reentry point just above the first support level below the previous highs in the indexes. I welcome any critiques of my strategy. I think I've covered all realistic possibilities, but if you see any holes, let me know. dh

To: HeyRainier who wrote (604)	10/30/1997 7:01:00 PM
From: freelyhovering	Respond to of 1589

Rainier--The following interchange is for your pleasure--http://www.techstocks.com/~wsapi/investor/s-17772/reply-280. And then my reply at techstocks.com. I hope you enjoy it. Regards, Myron