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Jim, Bill...
I have to agree with you guys on the Candlesticks signals. I have tested
them extensively and found no real advantage to using them. I suppose
that they may be valuable to a discretionary trader looking at the chart
but then again, they didn't test out with any advantage so that
shouldn't help. I too have wondered when I see someone with trading
success saying they work. Candlesticks and their patterns are just a
clearer visual depiction of individual bar patterns, if we do pattern
analysis/system design using O,C,H and L it's really the same thing only
bar charts are simpler. A good example might be buy when C>(H+L/2), is
this a candlestick? If I said buy when C>(H+L/2) and C=H that may be a
"Shaven Curly/Moe/Larry" candlestick or something but not as robust as
the former. As a position trader, I personally see alot of intraday
action as noise, I don't want to emphisize that with candlesticks(this
would not be true if I were watching real-time intraday charts). Anybody
have an explanation/thoughts?
All this is simply MHO :-)
... John
Bill G Bolumen wrote:
>
> Jim,
> I have to agree. I also tried Candlesticks for about 6 months with
> both Telescan and Metastock and was unsuccessful generating any
> reliable signals although some people swear by it, I have yet to see
> it demonstrated consistently. Even as an additional indicator, I
> completely stopped looking at it.
> Good luck this week.
> Bill
>
> -----Original Message-----
> From: Jim Greening <JimGinVA@xxxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
> Date: Sunday, September 13, 1998 3:39 PM
> Subject: Re: Weekly Pick
>
> Guy,
> I have Nison's book on "Japanese Candlestick Charting
> Techniques" and have tried to follow/use some of the
> formations with no success what so ever. I even tried some
> systems with candlestick formations, but didn't get good
> returns. I'm convinced that there may be something to it
> and even use the Candlestick charts, but so far it just
> hasn't soaked in <G>.
>
> Jim
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