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Registered User
Joined: 1/1/2005
Posts: 35
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Is there anyone out ther that has studied in detail the Japanese candle techniques described in Steve Nison's book? What has been your experience applying these techniques? Most people use candle charts because they are visually appealing...but rarely have these same technicians done any in depth study into the art and science of candlestick techniques. I have recently ordered Nison's book and am looking into spending some time to study this area of technical analysis. I understand that it can be effectively integrated with western technical techniques. Would love to hear from some serious candle traders.
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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You might be interested in this thread:
Japanese Candlesticks study results and associated research papers...?
- Doug
Teaching Online!
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Registered User
Joined: 12/19/2004
Posts: 457
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I find candlestick signals very useful when I'm finished doing my analysis, which involves looking at charts from multiple perspectives.
Candlesticks really do allow you to get into the head of other market players, provided you are aware of where that particular market has been.
I don't believe in any of this quantitative testing of candlesticks. Candlesticks are qualitative, short term signals. They are the things you should look at LAST.
Example: You are looking at a stock, and see a potential bottom forming. You see a positive divergence, a breakout from a double bottom on the weekly, and a steep pullback.
You look at the daily. The recent candles have appeared pretty bearish. But you see that today made a new low, but the open and close were both at the high. That is a potential dragonfly doji, and a low risk point to buy the market open at the next day. You simply close out if the low is violated.
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Registered User
Joined: 5/17/2005
Posts: 221
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rmr just about summed it up. I use hammers and dojis as good short term indicators close to support / resistance levels. Island bottoms and tops are good indocators to use also .
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Registered User
Joined: 5/17/2005
Posts: 221
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rmr just about summed it up. I use hammers and dojis as good short term indicators close to support / resistance levels. Island bottoms and tops are good indocators to use also .
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Registered User
Joined: 10/7/2004
Posts: 2
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Doji can be programmed into PCF's to use for screens in combination with other screens. A Doji in an uptrend might be identified by using moving averages to identify and up trend. Putting the Doji in for the previous day and identifying a Down Day following would save you the trouble of looking at Doji's that don't fall in an uptrend after the Doji. You can have any number of these. I have found that some simply don't seem to work very well. Considering that most trading done by algorithms now, may not be as reliable unless stock not widely traded. If you want some PCF's, post a reply.
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