Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (6386)	1/12/1998 9:48:00 AM
From: Douglas Webb	Read Replies (1) \| Respond to of 14162

I could probably hilight the expiration dates on the candlestick chart, which is pretty plain so far. I'm planning to put the TLB buy/sell signals onto the candlestick chart as red dots/lines during short periods and blue dots/lines during long periods, where the lines connect the dots. (Red dot - red line - blue dot - blue line, etc, for Sell Signal - Buy Signal) The biggest thing to get accustomed to with the TLB chart is that there are no dates. Each bar can represent anywhere from one day's trading to several year's trading. Until the price moves outside the bounding criteria of the previous bars, no new bar is drawn. The history beneath the bars does have dates; the dates where the signals occured. That's what I want to plot onto the candlestick chart. You can't use the TLB chart to gauge strike prices. The chart only tells you that the previous trend is over, and a reversal has taken place. It does not tell you how far the new trend will go, or how long it will take. Bollinger Bands, TRO, moving averages, and support/resistance are still better for determining that. The only book I've seen about these charts is Beyond Candlesticks, by Steve Nison. This is the guy who introduced candlestick charts to the west in Japanese Candlestick Charting Techniques. When he wrote this book (1994) he stated it was the first english book describing Three Line Break, Renko, and Kagi charts. Doug.