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Registered User
Joined: 11/10/2004
Posts: 39
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when looking at candle patterns I have noticed that a candle on a daily changes as you go to a 2 day 3 day etc. my question then is: say you get a bullish engulfing pattern on a daily and as you change time frames it no longer is a bullish pattern, so how can you tell if a pattern is valid either bullish or bearish if the candle keeps sending a different message as you increase the time frame thank you
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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This type of question is outside the scope of what we the trainer's can address. I will move this to the market talk forum so other user's can offer their opinions.
- Craig
Here to Help!
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Registered User
Joined: 10/12/2004
Posts: 7
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Just some thoughts my very limited experience...
It seems that what you are seeing is not an effect limited to candle patterns, but one that occurs no matter which technical indicator you are lookin at, eastern or western. That is, technical indicatators are only valid for the time frame that they are calculated over.
For instance, the bullsh engulfing pattern in a daily chart may become a doji in a weekly chart. Which is correct? Well, Both!
The bullish engulfing pattern on the daily chart is indicating a short term buy. On the other hand, the Doji on the weekly chart indicates price confusion and volatility when looked at on a longer term basis. This really just an aplication of the fact that a stock may be in a long term down trend while in a short term uptrend. Or visa versa.
Hope this was of some use :)
ron
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Registered User
Joined: 12/8/2004
Posts: 213
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Just as with TSV where you have short term, intermediate term and long term signals based on the number of days that you set the TSV to, so too with Candlesticks. If you are looking at a daily Candlestick chart (where candles are formed based on daily activity) it is more for the short term. If you are looking at a weekly candlestick chart it or monthly chart then the time period for the candle signals changes accordingly.
Hope this was of some help.
Bigalow and Nison have written very good books on candlesticks and Murphy at (removed by Moderator) offers excellent candlestick insight.
Good luck and don't burn your candles at both ends.
(posting outside websites is against forum rules -Moderator)
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Registered User
Joined: 11/10/2004
Posts: 39
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to ryurow and sir bollinger band width: thank you both for the reply. being an intermediate trader i guessing i should be looking at a three day or weekly time frame for signals also to sir bollinger band width i see the moderator removed murphy address could you e mail me at (removed by Moderator) thank you both again
(posting email addresses is against forum policy -Moderator)
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