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To: Galirayo who wrote (4959)	11/9/1997 1:27:00 AM
From: HeyRainier	Read Replies (1) \| Respond to of 9262

[ DEBS/WWLI/Scans ] Ray, That's an amazing pattern DEBS has developed. It's clean-cut. As for WWLI, the resemblance is there, but the spreads appear unattractive for such a small stock(historically, it appears to have had up to 1/4 point spreads for a $1 stock!); I think it would be better to pass this one up, and if the stock didn't move, you'd get hurt too easily from the spread just by trying to get out. The scans are interesting indeed. Gregory Morris, in his book "Candlestick Charting Explained" showed some back-tested results for candlestick patterns, and how they performed after a given pattern had emerged. The patterns that showed good trend-change indications over various time periods were: 1) Three Black Crows 2) Three White Soldiers 3) Three Inside Up 4) Three Outside Down 5) Dark Cloud Cover 6) Three Outside Up I myself like to use the Dark Cloud Cover as a near-term short sell criteria, particularly in overly hyped issues that have experienced unwarranted run-ups resulting from extreme optimism or exuberance. The adding of this "overbought" criteria to the filter scheme has resulted in a fairly high success level for the ones I have witnessed it for. Regards, Rainier

To: Galirayo who wrote (4959)	11/10/1997 9:04:00 PM
From: Eakole	Read Replies (1) \| Respond to of 9262

Ray, . . . First, allow me to thank you for the gift of your valuable time in supporting me in my efforts to profit from my speculations and investments. You have given me many insights I did not have previously. Before I ask the question let me first say I am a novice to the Candlestick methodology in Stock Analysis but I am reasonably familiar with the Magee & Edwards thoughts on the same subject. I find both systems compatible and complimentary to each other. I am also aware that these systems are as much a science as they are an art. (probably an art more than a science). . . In your reply #4959 you listed several stocks as having developed candlestick patterns consistent with that of <3 white soldiers>. One such characteristic is that the price of each candlestick <progressively closes at higher prices> . . . Another is that <it is also best if prices open in the middle of the previous day's range or body> Another is that <each should close at or near the high of the day>. As I interprete Three White Soldiers, it identifies the END of a downtrend. It in effect says that the <downtrend has ended>. The question is . . . In light of the foregoing descriptions, how can I reconcile GIGA, FDLNB or CKC, just to name a few, as being within the frame of Three White Soldiers? I do not see those characteristics. Perhaps I am not interpreting this correctly, please advise accordingly. Thank you, . . . . Eakole