To: donald sew who wrote (30761 ) 12/9/1997 8:41:00 PM From: MonsieurGonzo Read Replies (1) | Respond to
Donald; RE" 'sticks stuff..."Sorry if I corrected you... working together {grin} I am grateful for all the help I am given, especially from more experienced traders, such as yourself.quote.com CEX.X,D I mentioned "MIDDLE DOJI", but technically its called a Spinning Top on Monday, Donald - it looks like a Shooting Star , albeit a near-Doji , which would be really bearish in the context of following a long, white candlestick on Friday, and a new high. There is little or no lower shadow on Monday's candlestick, Donald - can't be neutral ; From open, the index rallied, then collapsed, to close slightly below open. When I see this kind of candlestick, I think, "little reversal likely to occur next". Although I am a stickler for trend lines and support levels, I consider Candlesticks to be intuitive; as Esteban put it into words so well the other day, "mass psychology in pictures"....a shooting star requires a gap. Japanese Candlestick Charting Techniques , page 70......the shooting star has a small real body at the lower end of its range with a long upper shadow. The shooting star pictorially tells us that the market [CEX.X] opened near its low, then strongly rallied and finally backed off to close near the opening. In other words, the session's rally could not be sustained. An ideal shooting star has a real body which gaps away from the prior real body. Nonetheless, as will be seen in several chart examples, this gap is not always necessary. ...a BEARISH ENGULFING pattern is normally with a good sized sentiment rather than the extent of price changes, what I do (in my mind) is sum together the candlesticks, of whatever time-slice, that comprise some prevaling period of "sentiment".Hammer could have been formed in one session, but if the sentiment to create a Hammer-Reversal persists over two sessions, it looks like a Bullish Engulfing Pattern instead. You get a heightened sense of the duration of bullish/bearish sentiments when you watch intra - day candlesticks, changing the time-slices from 13-minute to 39- or 90-minute candlesticks, summing the ebbs and flows of capital into something that resembles "sentiment events".espress from the caf‚ downstairs, and I'm off into the ether :-) Come to Paris, Donald - we'll sit down at the Caf‚ Flore and have a grand time over a bottle of good red wine and little shots of Italian bean-juice!
