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List,
Since some of you have probably received the paper "proving" that
candlesticks are useless...I thought it might be a good time to jump in and
stir up the pond.
Candles are between 137 and 521 times better than bars. Take it from a
technician who has read Edwards and Magee ten times.
I monitor, then buy and sell, 50 stocks (key components of the Naz 100, Dow
30 and S&P 500). Of the 50, approximately half of them have posted rather
significant "bottoming" candles today. The crude breakdown is:
Hammers: MER, MDT, HDI, DYN, MCHP, VTSS, PAYX, RATL
Bullish engulfing: ALTR, VSTR, MXIM ERTS, CMVT, CIEN, SEBL
Piercing: ATML, KLAC, LLTC, ORCL MOLX, AMAT, PCAR
Unless one approaches the markets with a completely mechanical system, which
I do, all interpretations of charts and indicators involve a lot of
subjectivity. Having said that: the above stocks, in general, should enjoy
a nice bounce because of the pattern of "supply and demand" that is
graphically represented by the candles drawn today.
The markets will always do whatever they want to do...but, the candles drawn
today suggest we are in for a good bounce.
Steve Karnish, CTA
Cedar Creek Trading
http://www.cedarcreektrading.com
----- Original Message -----
From: "Lionel Issen" <lissen@xxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Thursday, March 01, 2001 7:27 AM
Subject: candlesticks
> A few months back someone posted a comment about candlestick charts. I
think
> he mentioned that his daughter had done a study and found that the
patterns
> are random. Would the writer will please e-mail me privately and let me
know
> if/where I can get a copy of this paper, I'd appreciate it.
>
> Lionel Issen
> lissen@xxxxxxxxx
>
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