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

To: ted birnbaum who wrote (649)	11/19/1997 1:52:00 AM
From: MonsieurGonzo	Read Replies (2) \| Respond to of 1589

Ted; RE:"Relationship of NEWS to Candlesticks..." The funny thing about candles is news "trumps" candles but it's amazing how candles predict the news sometimes. Or maybe not, if you believe in leaks and insider info. I've noticed the same thing, but I didn't have the ballz to post such an observation. Glad you did, Ted. Absolutely weird how a top or bottom reversal candlestick, followed by a down or up move - has some "news" event associated with the movement the next day. I guess some of the (individual stox) could have been influenced by "insider trading", as you say. As a rule, I try not to be paranoid about the stock market... I try not to think of myself against some "force" out there. Nothing one can do about news, anyway: every time news comes out on WDC or SEG, my QNTM takes a nose-dive, for example. But after trading the indices by Candlesticks, and noticing the same news-follows-candlestick-indications pattern, I have come to the conclusion that the news fits the movement, rather than the other way around. What I mean is that we humans have a great need to "explain" things. Like, you read in the morning paper, "The stock market reacted to blah blah blah today, so it went UP/DOWN X points". Now I don't know about you, but WHO ARE THESE PEOPLE who are motivated by these things, and HOW COULD THEY KNOW THE NEWS until the next day, when it comes out in the paper {grin}. They go down when more people sell than want to buy / vice-versa. One big, important exception, Ted, is the OPEN/CLOSE: this is clearly and massively influenced by pros who are bidding up/down SPX futures. The Japanese call this Morning or Evening Attacks. -Steve