Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1

I agree on the attractiveness of shorter-term trades. My options instructors advised always buying enough time for the trade to work and suggested 30-40 days, which would also somewhat mitigate time decay. However, my technical tools aren't setup to make those kinds of long-term predictions.

Explanation: Although Japanese candlesticks have all but replaced Western-style OHLC bars, the two formats aren't interchangeable. As developed Munehisa Homma (in the mid 1800's?) for trading rice futures, they were meant to be used only and solely for EOM pricing and for understanding the dynamics of buyers and sellers in time frames of under 10 days. Thus, this distinction must be made. 'Candlesticks' is a charting format. 'Candle Pattern Analysis' (CPA) is a trading discipline that most in the West don't understand or know how to use effectively. Steve Nissan --credited with introducing candlesticks to the West-- is a crap trader. Greg Morris, OTOH, is worth reading and learning from.

Morris paired with programmer, Norm North, and explored the effectiveness of combining CPA with western-style technical indicators, which coincides with my interests as well. Norm marketed several versions of his program, and his son tried to carry on after his death. But both have disappeared so completely that even a Google search turns up nothing on them, which is a real shame. The latter versions of the program are robust and far easier to use than the usual suspects --MetaStock, etc.-- to find trading candidates.

Yeah, COW would be "news trade", and not my thing, and I'm glad I escaped my cotton trade without a haircut.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.