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

To: Esteban who wrote (672)	11/21/1997 5:06:00 PM
From: MonsieurGonzo	Read Replies (1) \| Respond to of 1589

Esteban; RE:" Reading the Tea Leaves..." The biggest challenge for me is to learn how to pick the spots where candlestick patterns are most likely to signal something important and avoid being constantly whipsawed. Another is to realize that the trend has deteriorated WITHOUT an actual candle pattern forming, and recognize the deteriorating psychology in it's absence. Man, I'm taking notes, you know? (^_^) Well said. ...take a look at Ms.Softie (MSFT) Big ol' Doji up there today. Weekly chart, though - says she's busted a DownTrend, so maybe a correction (daily) and then chugs through all that noise at the top of her trading range ? I dunno - (holding LMFAH JAN2000 MSFT 140 LEAPS, +2 from bottom of trading range @ ~130). -Steve

To: Esteban who wrote (672)	11/21/1997 5:10:00 PM
From: Tom L. French	Respond to of 1589

Esteban I've just begun to aquaint myself with this thread, but what youd said about candlesticks having to to with sentiment is right on. From what I understand, if I can equate sentiment with psycology, that is in fact how they were developed years/centuries ago in Japan. They were used for commodities trading and some people got very rich using them to size up the existing psycology/sentiment of the market in trading rice futures. I also agree and have found it tough to get comfortable with them because of the wipsaws on the one hand and a trend change without a candlestick appearing that indicated it was coming, on the other. Nison recommends combining them with other indicators, which helps I find. I'll stay tuned and particpate here. Regards, TomLF