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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (9363)	3/28/1999 11:48:00 PM
From: Gersh Avery	Respond to of 99985

Hi LG .. Data for Monday: rough OEX equivalents: Large fork tines: Upper : 1310.41 (27.61) 663.67 (13.98) Mid : 1245.47 (-37.33) 630.78 (-18.91) Lower : 1187.35 (-95.45) 601.35 (-48.34) Small fork tines: Upper : 1315.9 (33.1) 666.45 (16.76) Mid : 1269.82 (-12.98) 643.11 (-6.58) Lower : 1223.73 (-59.07) 619.78 (-29.91) Note that at the open Globex could be negative and still be in buy program area! Globex opening trigger values: Buy trigger : -92 (1296.08) Sell trigger : -528 (1291.72) Prem values for the day: buy trigger 13.28 fair value 11.05 sell trigger 8.92

To: HairBall who wrote (9363)	3/29/1999 1:11:00 AM
From: Lee Lichterman III	Respond to of 99985

LG - Re candlesticks, MetaStock has an automated program that will do that and take out any bias a "real person" could put into the read. Just state what charts you want interpreted and I could just run the automated scan on them and do a copy paste type thing unless it is going to be an exaustive number of charts. As you know, I use candlesticks and interpretation is often borderline. When is a hammer a real hammer top if it is right on the border of the previous high etc. How much volume is required over average to qualify as a hammer bottom? Also, each of us have our own "favorite " formations we look for while ignoring others we don't often recognize or know of. Using a automated program that isn't in a trade with money on the line or not worried about being wrong and having it's feeling hurt may be the way to go. This system is part of my autoscan that I currently use along with other indicators but I can seperate just the candlestick part out such as this example from the weekly NASDAQ chart. This is a more active read as compared to the norm which usually only adds the results of white and black bodies (boring) but when formations appear, it doesn't try to dicard them for reasons that don't agree with over all market bias, it just says what is there and then tells you what they mean in a short comment. Here is what the weekly NASDAQ one said. A black body occurred (because prices closed lower than they opened). During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles. A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold). A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble. Personally , I would have called it a possible hammer top but I am only human <g> EDIT - Here is the DOW's daily A black body occurred (because prices closed lower than they opened). During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles. A bearish harami occurred (where the current small black body is contained within an unusually large white body). During an uptrend (which appears to be the case with DJ INDUSTRIAL IDX) this pattern implies an end to the rally as the bulls appear to have exhausted themselves. During a downtrend the bearish harami pattern is bullish as the bulls appear to be gaining strength as the bears weaken. A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold). A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble. Lee