|
PureBytes Links
Trading Reference Links
|
At 8:05 AM -0400 7/27/98, Steven Buss wrote:
>- I'd like to confirm that those folks doing the exercise above come to
>the same conclusions that I have. Specifically, after doing this exercise,
>do you agree with both conclusions A and B above? If you don't, why not?
>If you don't, what specific reversal date/time led you to your different
>conclusion?
A candlestick pattern is simply a representation of what various price
patterns look like on a longer time scale, sort of a short hand way to
represent a pattern.
For example a V bottom price pattern spanning one day on 45 minute bars
would become a "hammer" candlestick. Nothing magic. Just a result of the
compression.
Greg Morris did an extensive evaluation in his book, "CandlePower". He
tried all kinds of combinations including various filters on the
candlesticks. The conclusion, as I recall, was that they are not tradable.
Bob Fulks
|