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

To: Ken W who wrote (1346)	7/8/1998 9:03:00 AM
From: sean sanders	Read Replies (1) \| Respond to of 1589

Ken, Well I have Morris's candle book and also Nison's other book, beyond candlesticks. Someday in the future I'm going to purchase Nison's first candle book, but right now I'm happy with Morris's and the extra $60 in my pocket :) The book Beyond talks about some other different charting methods - Three line break, Kagi, and Renko. Nison talks about these charting methods briefly and tells you how to hand draw the lines (I personally don't care for the description on how to hand draw these charts) I would have rather had more pages written for interpretation of the line studies instead. I picked up Swager's T.A. of the futures market (a decent book talking about trendline studies and chart patterns - ALTHOUGH he doesn't mention volume!? though out his book). Anyway and I read about candles in there then purchased Morris's candle book and have had them displayed on my charts ever since (can't live without them <g>). When I used to trade actively I used to watch candles with great interest; sometimes with too much interest. I would often 'sell' out of a trade when the first signs of 'indecision' candles or 'reversal' candles would come into the picture. Then next thing I know after a small wave down the stock is up %75 4 months later :( So I'm trying to look at the whole picture and not to get 'jumpy' on just a few candles. Some of the candle patterns that catch my eye are - hammers - I see these a a nice place to draw a support line and perhaps a reversal will follow. spinning tops (especially with higher volume) - I'm looking for a reversal soon especially when in an uptrend. Tweezer tops or bottoms - I'm looking for a reversal of course the cloud cover - but I tend to just glance at these candles not to run for the high hills when I see them. and I tend to notice engulfing days - but I don't get too excited over these, unless I'm looking at a longer term play. OH! I almost forgot the gravestone doji in an uptrend (especially with a long upper shadow) - this is another of my favorites. one candle I tend not to care for much is the 'hanging man' often times (well more times then not on the charts I look at) prices don't start to trend down then either stay in that area or do something else. Hope you find some use for the info. Sean Sanders