Japanese Candlestick

[kennynah]

Piercing Candle - kennynah May 2010

you will see such a piercing candle formed last Fri, 21May2010, on SPX daily chart...

it is important to understand that not all candles formations will pan out exactly the way textbooks state them... just like any other technical indicators, some formations will fail at times ... nothing is guaranteed... but they serve as a guide to be complimented along with other TA indicators for better decision making...

particularly, even if this piercing candle reverses prices, we must still consider the macro picture...we should not read candles in isolation without putting that in context to the overall daily/weekly and monthly price actions.. that said, it means, that price could reverse, but for how far up is not addressed by candle studies... so, it could go up and shortly afterwards, revert back down again...yet, that reversal did take place and will be applauded by candle technicians that it has done its job..

but for the candle rookie reader, he might not take profits as the candle hit higher and see it turn back down later.. and then say candles didn't work for him...

so, in other words, once the candle signal gets into play, keep that earlier signal in mind, dont get all too hung up on it because you want to start looking for the next candle signal/formation, that either augment or negate the earlier candle signal...

in this sense, candle reading is a post mortem technical study..

your thoughts? thanks.

[iam802]

My personal observation.

From late April till last Friday, all the rally after a drop, did not last more than 3 days.

Just an observation. Anything else will depends on candle formation, gut feel, how the wind blows etc.

[trendlines]

My first post here.
Excellent thread on Candlesticks! Thanks kennynah.

My take is that, every individual stock/sector/index chart has its unique behaviour (as collectively displayed by the group of investors/traders interested in it). A TA tool my work brilliantly and consistently on one chart, but not on the other. Requires study to extract information out of each individual chart.

And like one of you mentioned, high volume is key to any predictability. My 2 cents worth

[kennynah]

welcome to this forum Trendlines

we look forward to your future posts....

[winston]

Talking Technicals – Candlesticks
Author: Christian Tharp

So, you own a stock that has been rallying nicely. You are making money and all is going well.

At some point the question crosses your mind “When do I sell?” You don’t want to just take a guess, but you also don’t want to give up any more profit than you have to by letting the stock drop.

What sign might a stock give you that it’s run could be over? Time to talk about another candlestick pattern!

Bearish Engulfing Pattern

http://www.yolohub.com/trading/talking- ... ndlesticks

[winston]

How to “See” Your Trades Like a Master Trader

by TOM GENTILE

Source: Power Profit Trades

http://powerprofittrades.com/2015/11/ho ... r#deeplink

[winston]

These “Samurai Patterns” Could Get You 100 Winning Trades in a Row

by TOM GENTILE

Source; Power Profit Trades

http://powerprofittrades.com/2016/03/th ... s-in-a-row