Many of you know about candlestick charting, of course. But really trading the candles, how many of you?This ancient rice trading method has been put into the investment community by the Steve Nielson and it's books.Basically, the idea of the candles is identify some visually evident patterns of trend change to put the probabilities on our side. The use of candle reversal signals combined with Stochastics, may give us 70% good signals. The probabilities will be further enhanced by the use of moving averages. A candlestick signal ( long or short) happening on a stock bouncing of a 50, 100 or 200 day moving average, with Stochastics oversold ( overbought on short plays) will be the best thing next to sure money.So, the proper scanning software to search for the proper sector strength ( weakness) and stocks showing the candlestick signal at the right place will give the astute investor a good edge to profit from the newly trend earlier and less riskier than traditional western chart methods.What was I thinking when I asked the fool to open a new board?Well, I'm looking for smart people who wants to be proficient with the candlesticks trading method. In the mid term I'd like to search for back-testing methods on several entry techniques. I get to respect a lot the people from the mechanical investing board. What would it be like to use the candlesticks as a timing filter to be used with the several mechanical screens? Will this improve returns on the screens?Will this method lower the risk?Is it worthwhile?Is it possible to better profit from option treading ?Can we find good weekly candle trading strategies?This is open to discussion and experience from you is welcomedNice Trading and investingFrancisco
Any good reference here - on what has been said before on Candlestick Trading (either a book or msg pointer)?
Francisco, Good idea for a board, I look forward to its development. I used to use a technical trading software package called TradeStation 2000i, by Omega Research. You can back test candlestick patterns on it to the best of my knowledge. I have never used candlesticks in the systems I wrote, mostly I used MA's, stochastics and ADX as my indicators for trading signals. I think that the ability to combine robust fundamental screens and good technical indicators will prove to be an interesting and most likely profitable experiment.Chris.
This is just the constitution of this board. For starters on candlesticks I have a pointer to some internet links:A free internet intro to candlestickshttp://www.candlestickshop.com/seminar/The best book covering candlesticks and a trading progam using them:By Stephen Bigalow, called "Profitable candlestick trading"http://www.candlestickforum.com/candlestick_trading_publications_2.htmla free intro ebook by Stephen Bigalow:http://www.candlestickforum.com/downloads/amazingbook.pdfI'd like to meet too people with knowledge and experience to raise the level of this new forumFrancisco
Greetings....Count me in as a lurker and rare poster. I use candle sticks on all my charts because of the visual impact/quick read benefit vs. bars. But I'm not a font of knowledge re names of patterns, or interpretation of many of the patterns, so I'm here more to learn than to teach.BTW, you may be interested in a new development StockCharts.com is starting up just now. They are "fattening up" candle bodies to reflect daily volume. Here's a link to the MSO chart on the day that Martha got the guilty verdict!http://stockcharts.com/commentary/archives/cww20040306h.html#chipandersonScroll to the second chart.Cheers.....Cliff
HelloThis is another interesting tutorial on candlestick signals.http://www.candleeyes.co.uk/Franciscops: My goal in the first week is for new people to read those tutorials and begin asking questions. Next week I will work on some portfolio models using 2 or 3 MI popular screens and build paper trades using "end of day" buys.Also I'll post nice patterns, explain the rationale of the trade, try to set stop loss points and possible targets.This portfolio will also be tracked.Francisco
congratulations on this new board. It is much needed. I also like your goals and am anxious to learn. I have read Nison once quite some time ago and have begun to reread it but for some reason, it is becoming increasingingly 'confusing' - for example in the watchlist on message board number 8, I see 'hammers' but I also see 'death crosses'. I guess the question I have (and perhaps it is premature) is "Is Candlestick interpretation a 'standalone' process?" and "if so, are there 'degree's of reliability' to the various patterns?" Perhaps this has been covered in Nison or elsewhere but I would like your personal opinion as a practioner. Many thanks for starting this board and for any help you can provideG McLeod
Hey this is great. I have just starting getting me feet wet by reading up a little on charting. Not sure I buy into all of it, but there is a lot of stuff that makes sense to me. I would love to see the results of an MI/charting approach. BTW thanks to all who already provided links to tutorials.
You might also look at this one: An Introduction to Japanese Candlestick Charting http://www.altavest.com/candlesticks.html. Ed
HiI'm just re-joining the fools after being absent for a while. I have some knowledge of candlesticks gleaned mostly from "Japanese Candlestick Charting Techniques" by Steve Nison. My understanding is that Nison's book is a sort of "candlestick bible" if you will. While I am by no means an expert, I am somewhat versed in the subject and use TA a lot. I'm also familiar with the candlestickshop web site which I have referred people to many times in the past. I'm curious to see what sort of discussions evolve on this board.stickman
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