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Re: Candlestick Patterns:
......
> I offer my thanks in advance if anyone takes the time to post and can
> direct me to data re. same. ie. accurate analysis of the formations, or
> at least enough understanding of them, that I can do my own analysis.
.......
> Regards
>
> Steve
>
I am no sure what is being asked here; books, there are plenty. I
recommend Nison's "Japanese Candlestick Charting Techniques," and
Greg Morris's "Candlepower." Also note that Tushar Chande's QStick
indicator is based on a candlestick pattern.
At the moment I am too lazy to look up the specifics, but I seem to recall
that Murray Ruggiero did testing on candle patterns for Futures
magazine. Of course, my memory isn't what it once was, but iIf
pressed, I will look in old copies for the reference.
Candlestick patterns are best when used in conjunction with
indicators of your choice. To quote from George Lane, originator of
stochastics:
"Stochastics works [sic] very well with candlesticks. Candlestick
charts are a great improvement over bar charting. I don't think bar
charting will be popular in another ten years."
Remembering that candlesticks emphasize opens and closes rather than
highs and lows, I offer two personal caveats:
1. Give no validity to intraday candle formations since the openings
and closes of each bar are set arbitrarily by bar time interval
rather than the market. I use them for intraday analysis only because
they are easier to read at a glance.
2. Given 1. above, computerized, 24 hour trading could signal the end
of candlestick pattern analysis.
JFB
Shaven Heads Trading
NYC
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