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

To: James Anderson who wrote (832)	11/29/1997 3:18:00 PM
From: ted birnbaum	Respond to of 1589

ENMD - I took a very small very short term position in this one long based on the candles, I think it has more upside to give before it settles back down.

To: James Anderson who wrote (832)	11/29/1997 5:51:00 PM
From: Esteban	Read Replies (2) \| Respond to of 1589

James, Re: RECY Remember that candlesticks are very short term indicators, and that any pattern you encounter now would more likely indicate reversal of the 5 day down trend, rather than the intermediate uptrend. Friday's candle looks like a spinning top to me, indicating indecision. The recent action in this chart is a good example of a case where the psychology behind the patterns is more evident than the patterns themselves, which vary from the established candlestick patterns. On 11/20 there's a very strong long white breakout day, and the next morning prices gap up dramatically. The long black day that results from the gap is very much like a belt hold but is not marubozu, because it has an upper shadow. Nevertheless to me it indicates that traders are afraid things are moving up too fast with almost all of the day's action contrary to the previous day. The next day is harami like, would actually make a classic reversal pattern except the previous day is black instead of white. The last three days partially correct the original breakout to about 50% retracement resulting in Friday's indecisive black spinning top. A long white day from a lower open on Monday would make a great bullish engulfing pattern reversing the mini correction. That's not a prediction, but something to look for. There is a lot of support in the 7 to 7 1/2 area, so I'd look for a reversal there in a few days if Friday's indecision doesn't spur a reversal here. Esteban