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Hello, P:
On 06-Mar-01, server not recognized wrote:
> What would be interesting would be to do a statistical analysis of the
> various candlestick formations and how they went in todays timeframe and
> sentiment, not Japan c16.
The era has nothing to do with how well candlestick patterns work.
I have only read a couple of modern studies (I don't think Nison would be too
objective at doing a candlestick study and he doesn't try in his books -
generally, he just shows when it works in his favour) and, for the most
part, they were not encouraging. Therefore, so far, I only have used
candlesticks to interpret current emotion in a market or stock.
> Ive read of these before and they don't in several significant formations
> respond as advertised, either as strongly or at all.
What I saw showed that accuracy depended upon the stick pattern -
some were, some were not good at predicting moves.
When it comes to trading, candlestick patterns only represent the current time
period (say, the last 3-10 days) and the market can change sentiment very
quickly (which is to say that any trader needs to know how to exit a trade
before getting into a postion). I feel that the less information being used to
make long term decisions leads to more misinterpretations of the data. A
candlestick pattern is only relevant until the next one is formed. That's why
I still consider using sticks as an art form. Even Steve Nison admits that
combining sticks with other indicators helps with reliability, but then many
indicators need confirmation, not just candlesticks. Choose your TA weapons
wisely.
> I should imagine it would be hard to program into amibroker and check out.
Having had a brief look at doing this myself, I feel that the main programming
problem is probably the relativity of the price information - what constitutes
a "long" or "short" body or tail. Candlestick interpreters exist, so it is
possible.
The "hard" part for the user is the art of interpretation.
--
---===///||| Donald Dalley |||\\\===---
The World of AmiBroker Support
http://webhome.idirect.com/~ddalley
UIN/ICQ#: 65203020
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