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Partly right;
but ever wonder why its called 'weather forecasting' + not weather prediction?? LOL
UP January/ up year 88% of the time. Stock Traders Almanac.
Not a prediction + this applies to stocks/ETFs
Tell me some candlestick patterns and their forecasts
- Thread starter Alexis_0
- Start date
Partly right;
but ever wonder why its called 'weather forecasting' + not weather prediction?? LOL
UP January/ up year 88% of the time. Stock Traders Almanac.
Not a prediction + this applies to stocks/ETFs
OK Look at HOOD
As people say it is context and NOT creating things that fit. I.e., don't go along and "find patterns" and then try to trade them. They are too weak to stand on their own, out of context.
Above are some comments going from left to right with the underlines.
As people say it is context and NOT creating things that fit. I.e., don't go along and "find patterns" and then try to trade them. They are too weak to stand on their own, out of context.
Above are some comments going from left to right with the underlines.
- Combine these bars and you get a 5 day Hammer. After a gap down on higher volume, the volume fades as the hammer forms. Possible, possible bottom.
- The Test: Combine the two and you get another hammer. A bottom is forming, but will not be confirmed until is actually holds and it is a bottom. Aggressive entry is here, but it is aggressive because the stop will be immediate OR you take a larger loss on the bottoming failure.
- Combine the two to get a "shooting star". But this is expected because of the gap fill. Good entry here.
- Break out long bar out of range. Good exit expecting a pull back, or double down on the long, or just hold or trim and hold.
- Combine and get a Hang man, AFTER a run up. This says, DON'T buy the next bar expecting a "Breakout", because it has not confirmed. Don't buy 12.30- 12.40 area while the bar is forming. Good place to sell though. Also the previous several bars on higher volume could all be combined into a single long bar. This is consolidation with because so much traded and not moving up that much.
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Good small cap uptrend on that chart;
if one likes to buy single stocks. Good buyin' in $11.11area, for single stocks.
IF cash copper , extreme example\ goes from $77.7 to $11.11, hi probability i can still make money. Used IBKR + SCHW as broker$=good-excellant.
IF HOOD goes from$77.777 to $11.11\ good thing i have a sellin' plan on cash copper LOL.
Kathy woods has done much better than average on single stocks like HOOD
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I read Nissan's book years ago. IMV, candles work best at "potential reversal" points rather than "continuation". However they are not exclusively revealing. The same info can be gleaned from other disciplines.
The most revealing candle patterns in my view are... Shooting Star, Hanging Man, Hammer, Morning Star, Evening Star, Gravestone Doji (maybe), and "multiple stars near potential tops/bottoms"*.
*Such patterns have been among the best reversal patterns. They infer strong indecision about continuation of recent trend... and therefore likely reversal. These don't occur often, but IMV they are the best-of-the best trade indications... and when you see them on the daily chart you should pounce!
(You can thank** me later for the Lambo you will soon be able to afford for following this advice.
)** Actually you don't have to thank me at all. If so inclined, just donate a few $$ to some no-kill animal shelter near you. If you don't have one, you can donate to my fav.. The Max Fund.. Denver Colorado. (The Max Fund was started years ago by a veterinarian who picked up a poor dog on the side of a road. Max Fund is swamped. Many people who took in "companion animals" during the Covid lockdowns dumped them after restrictions were lifted. Some people couldn't stand the thought of having their former pets put down, so they dumped them wherever they could. Max Fund is one of those places.)
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There is "some" correlation between candle patterns and "what follows next". Those correlations can be learned.
In the real world, most people only look at what they wanna see and listen to only what they wanna hear. It's the same thing in the market. Traders look at profitable patterns from their own vantage point and they have endless reasons why they're so good. Unfortunately, most of these explanations can only be explained in hindsight. If you were to politely ask them to explain their reason while the market is open, they're usually silent.
That was after he changed his name. He went by Steve Datsun before that.
How long ago was that??
I see what you did there.
I guess if he wants to sell a book based upon Japanese Candlesticks, perhaps he thought having a more Japanese-sounding name might help? But Datsun was the brand name of Nissan before name change.... ?