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hi...just got to your note on candlesticks..are you using them in
matastock..can you explore with them..is there any code out there to do good
explorations with them..did you see the article in TASC magazine 11/99
....thanks...
At 05:57 PM 10/22/98 , you wrote:
>Dan,
>
>Excellent response. This is exactly the foundation of candlestick
>charting, with strong emphasis on the relationship between the open
>and the close and the interim price action during the day. By
>observing the size of the candle(height) the color (filled if a lower
>close, open if a higher close) and the length of the shadows
>(whiskers, the daily high and low) you can easily identify
>patterns of strength or weakness, solid price movements or
>indecision. Volume is not a traditional part of a candlestick
>chart. Once you learn to read them, it's hard to go back to
>standard bars. Candles don't help in determining the duration
>of a move, but they assist in determining the direction.
>
>James in Huntsville
>p.s. not trying to convert anyone, as it is an acquired taste...
>=======
>The theory I have heard is that the market action at the open reflects what
>the amatuers are doing and the action at the close reflects what the
>professionals are doing. The amatuers go home from their day jobs, analyze
>their charts in the evening or over the weekend and place an order to buy or
>sell at the open the next day. The professionals watch the market through the
>day and open or close positions during the last hour of trading. I doubt that
>the professionals are trying to draw in suckers. More likely, they are trying
>to open trades that they believe will be profitable or are trying to limit
>their risk by closing positions and sitting on cash until the market reopens
>(i.e. "daytraders").
>
>As I understand it, a strong close is bullish while a weak close is bearish.
>The action at the close reflects the opinions of the smart money.
>
>Dan
>Pocatello, ID USA
>.
><< Can someone explain to me what is happening when the market opens low and
> then closes high. Is it that the novices are selling and driving the price
> down while the professionals are buying to attract more buyers? Its been
> this way for the last two days. Thanks for any clarification. jerry...
> >>
>
>
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