candlestick question

Discussion in 'Technical Analysis' started by overload, Jan 17, 2004.

  1. I took a short position at 1.2719.

    Are there any candlestick formations that would have indicated this price fall before it happened? If so, what are the names of them?

    can you tell from this (static) chart or do these type formations need to be read live?

    pls see chart below (next post)

  2. here is the chart.
  3. You should invest in Steve Nisons Book Japanese Candlestick Charting Techniques.He brought Candlesticks from the East to the West so his work is the best place to start.
  4. dbphoenix


  5. PetaDollar

    PetaDollar Moderator

    I'll take a stab at this.
    At the top there is resistance (See that long upper shadow) followed by a bearish engulfing. That's when a red body eclipses the body right before it. A little while later there was another bearish engulfing.
  6. PetaDollar

    PetaDollar Moderator

    If you look earlier in the day, there was another bearish engulfing that didn't work out so well for the shorts (time: around 15:00).
    If anyone could comment on this one, I'd appreciate it.
  7. The 3 bar pattern which included the high was an Evening Star. The most relevant candle patterns are forms of "stars" and "engulfing" which occur at resistance and tops of patterns + support and bottoms of patterns.
  8. Thanks, StockOperator, exactly the book I have. Just thought I could get a jump on formations.

    I guess it's tough to explain over a message board, though, exactly which candlestick (and its formation) is being referred to without being able to point to it live.

    Actually, and this is to the rest of the guys too, I posted this at the request of another trader who I was posing these questions to, but appreciate everyone's attempt to answer!

  9. cdbern


    interesting. so does the movement @12:50 - 13:20 have a name? Is there anyway of knowing that there would be a drop in price beginning @ 13:20?
  10. Luto


    Rather than looking for particular matches, look at the general pattern.

    Bars up with waves, A long bar up, Several spinnning top doji type patterns indicating a pause. Let's see, a run up, then a pause. What would you bet upon? Not necessarly a slam dunk top, but that is not what you want anyways.

    #10     Jan 17, 2004