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To: Thean who wrote (3251)	11/19/1997 10:07:00 PM
From: Tom L. French	Read Replies (1) \| Respond to of 95453

Thean Thanks. I got the idea about the chance for reversal being greater with a gap down at the open. That is why a piercing pattern is one of the most powerful reversal candlestick patterns--where after a big down day, it opens gapping much lower yet, but then moves back up and closes at least halfway into the body of the previous red/black candlestick, forming a very bullish big white candlestick that deeply pierces the body of the previous down day (their military analogies are many)... the bulls are saying WE ARE BACK!. By way of contrast, it takes a lot more buying power to both open with a gap up and then continue still higher. That's the basic idea, right? I was initially confused because the Japanese generally view windows/gaps as continuation patterns--a gap down or up suggests more of the same to come. Speaking of ten red/black candles. It has been said that after 8 down or up candles in a row, you will very likely get a reversal, at least short term. They have a name for this which I can't remember. Many drillers fit this pattern now. I haven't actually looked at my charts for today yet, but this sell off has been so severe the last two days, I'd be really surprised if it continues Friday. A gap down at the open might be a very good set up. Good trading- TomLF