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

To: PuddleGlum who wrote (947)	12/14/1997 5:24:00 PM
From: MonsieurGonzo	Read Replies (1) \| Respond to of 1589

Steve; RE:" When the Candles say SHORT..." ...turn the chart over, hold it up to the window, and pretend you're going long. Use STOPs. Declines are faster than Ascents; that's the biggest difference, usually. Stocks have to be "bought UP", but they simply "fall DOWN". You have to watch shorts more closely than longs, but otherwise there ain't no difference. BTW, I'm not joking about holding the candlestick chart against a light-box like a window. Ever since late August, going long has been "kind of scary" for me -! We're over-sold. If you have a chart generator handy, type in INDU or OEX and change it over to LINE from CANDLE. Draw trend lines on it. We will either bounce here or, really plummet, as in a "waterfall" type pattern. I'm expecting a little bounce. If we're lucky, there will be an easy-to-read shooting star or gravestone doji - the bearish engulfing patterns and bearish Harami's or more difficult (for me) to sell short at, because the downdraft has already started. I'm more of a "position" trader than a "momentum" trader. To each his own. In the main, I don't like to sell short "defensive" stocks (as in the DRG.X index) because they are stronger than most other stocks. If you want to really be safe, switch your CA$H over to SPY (Esteban is the resident expert with SPY). It doesn't move quickly, and you can easily flip it from LONG to SHORT; SPY is like owning a 500-stock diversified portfolio of the biggest US companies. If you can't "invest" or "trade" in SPY successfully, using what ever charts or F/A tools in your arsenal - then you probably shouldn't be playing the market, IMHO. After taking a vicious hit in the TechStocks, I have put myself in the DogHouse and gone back to square one - reading and trading the market indices. Until I have confidence that I can "invest" and "trade" in these, I will not be doing a heluva lot with stocks. However, I took a (small) JAN2000 LEAP position in INTC @ 10 Friday, on the basis of a 1-to-3 point bounce (in the LNLAT LEAP)... But clearly, INTC looks like a gigantic Head & Shoulders, and if it breaks 68, it will find some support at 64~65, and then go way down. As goes the INTC locomotive, so goes most of the Tech Sector. Ask William Hueb on the "Waiting for the Big Kahuna" thread about INTC (or any of the other bellwethers) - he is a well-respected T/A here on SI (hey folks, I'm just a student here). Good Luck, candle-freaks! Year-end Tax-Loss selling is the plat du jour, with Kimchee on the side! (^_^) -Steve