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

To: Esteban who wrote (669)	11/21/1997 12:47:00 PM
From: MonsieurGonzo	Read Replies (2) \| Respond to of 1589

Esteban; RE:" Confirmation issues..." Yes, Esteban (you are a good candlestick reader) I've been playing with the idea of using 300-minute (or some other intra-day time period) as a way of confirming a daily candlestick, a priori. Gaps (ie., "Windows") are difficult! One can look at charts and say, "they are always filled". But then, hold a stock long enough, and one can prove almost any assertion true (^_^) Along with Windows there are days like today - most of my TechStocks show RED candles - yet the whole bar is UP for the day, because the pros (futures boyz) opened the market WAY up, and it's been drifting down ever since. Same thing on DownTrends - when they open the market WAY down, and it rallies all day, but the whole candle is lower than the previous session. Tough to trade on those days: because of the Morning or Evening Attacks. There is this interesting, advanced section in Nison's second book, Beyond Candlesticks, which talks about these new, Japanese chart types - the Three Line Break Chart, the Renko Chart, and the Kagi Chart. To quote page 167: A Japanese trader described (these charts) as, "a more subtle form of point-and-figure charts where reversals are decided by the market, and not by ordinary rules". These charts solve the Gap or Window dilemma, Esteban - but I have not come across any chart generator in the West that can generate these kinds of Japanese chart types for us. -Steve