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 Gold Customer
Joined: 8/15/2005
Posts: 71
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I cut pasted sccanned and back tested. My opinion is that there is no magic bullet.After all the work and frustration involving candle scans, I've decidedtheir not worth the time.Your opinion is welcome
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The trainers don't offer advice on interpretation or give opinions on the usefulness of specific indicators or techniques. I'll move this to Stock and Market Talk where other traders will be more likely to see it and comment.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 10/7/2004
Posts: 2,126
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Ann I think I have posted about this before. Every study of the ancient technique of candles that has been carried out suggests that it is a 50/50 proposition. In many instances even less probability than that. On top of that most westeners do not realize that a system made by the ancient oriental will probably not work for the folks in the west world. Asians, and people from the west have little in common. Completely different personalities. And by the way, there is no magic bullet or holly crail. It is you, you will dictate your own maket according to your personality. Be original, and try to find a system that fits your personality; keep it as simple as possible, and if it is clear that you are not made to do this - stop wasting your time and money and get out. There are other ways to invest your money besides the stock market. Candles are fun, but in my opinion far from profitable in our side of the world.
good luck
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Registered User
Joined: 4/8/2005
Posts: 9
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Ann, I've followed candle sticks for years and
your right with the exception of a few. The strongest
is a hammer on high volume and the longer the tail,
the better. In a down trend fter a hammer, the trend will usually stop and move up or go sideways. Next in line is the hanging man and shooting star. They are
much weaker. The rest I've observed poor correlation.
Good hunting
lepaul
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Registered User
Joined: 12/19/2004
Posts: 457
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I'd have to disagree.
It is pointless to attempt to statistically analyze candle patterns mechanically.
First, there needs to be a dominant trend before a candle pattern can signal a reversal.
Second, candle patterns are short term patterns. They may signal a "reversal" of the short term trend, but the longer term and intermediate trends could be so strong, that the "reversal" turns out to be a pause, then a resumption of the major trend.
Third, candle patterns have analogues in western charting. I think it is relevant that Japanese traders 300+ years ago found similar patterns in market data that western traders in the past 100 years have also used.
Candle patterns reveal the psychology of the market. They are descriptive, not predictive. They need to be looked at in the context of other market data.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Every one here seems to be omitting the indicator that imo goes hand in hand with a daily candle...daily volume. What at first glance appears to be a bearish of average length (body is mostly filled in) should be considered less seriously if accompanied with average to below avg. volume. But to a point. Maybe the vast majority of the negative volume came in the last few minutes of trading. Maybe that indicates some smart money just got wind of some bad vibes near the close. Traders thinking of entering a new long position in this example would be wise to pull up the stock's intraday chart with 5 minute bars for closer examination.
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