Faithful Unorthodox Candlestick Pattern
Much is written in the standard Japanese Candlestick textbooks about the standard candle patterns and their degree of predictive reliability. Hardly anything is said about variations of those patterns. The reader is left with a dearth of information about applying personal judgment to those less-than-ideal formations in the quest for predictive reliability.
Over a long course of time, I have found that it is very worthwhile to pay attention to candle patterns which are less than perfect in their construction. An excellent example has just now arisen in the Daily charts of the Dow Industrials - today being July 29, 2008. After a considerable advance, we see a (relatively) tall white candle on July 22, followed by a Spinning Top Star, a little higher than the tall white, on July 23; and then a tall black candle which began at the level of the Star. A more perfect formation would have occurred had the Star been completely above both the tall white and the tall black.
Nevertheless, that three-bar formation was close enough to "perfect" to catch the eye and allow a prediction that prices would fall thereafter. Prices were about level the next day; but the day after that (yesterday, July 28) produced another tall black candle and a 239 point decline in prices.
It is suggested that the standard Japanese Candlestick textbooks might be enhanced by the addition of special sections which would demonstrate the power of candle formations which are less than classically perfect but which, nevertheless, possess predictive power.
Related Tags: candlestick, candlesticks, japanese candlesticks, japanese candlestick, market letter, candlestick market letter, japanese candlestick market letter, candlestick pattern, japanese candlestick pattern, candlestick formation, japanese candlestick formation
Author is an experienced investor; a retired attorney and corporate CEO. He has passed the NASD Series 65 Investment Advisor exam. He publishes his free investment advisory newsletter three times weekly at http://www.candlewave.com
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Sbi Best Sip Plans 2010
SBI Mutual funds have introduced many mutual schemes. Each scheme has different limitations. SBI SIP - Icici Sip Plans 2010 - Best Sip Plans
ICICI Prudential offers many schemes. These fund schemes have SIP. What is SIP? SIP's expansion is S - Determining Where To Invest Money
There are several kinds of investments, also you will find numerous factors to find out where to inv - Retirement Plans A Necessity Of Life
A person works whole life to give a decent upbringing to his children and families. But while improv - Stock Market Timing Signals
Follow the PlanThis would seem a statement of common sense, but the fact of stock market timing sign - A Selection Of Financial And Investment Strategy Guidelines For Turning A Profit
Yet, we don't often have the money to leave work right at this moment. We need a constant salary to - Find Out The Profitable Way To Invest In Small Cap Stocks
Everyone wants to find a penny stocks list or other investment strategies that can turn your literal - Portfolio #4 - Watergate
IntroductionThe problem is not that the world is running out of water. No, the problem is that drink - Dulton Group: Information Content Of Dividends
Dulton Group helps you to analyze the information content of dividends, an important factor affectin - Coping With Fear In A Markets
The real fact is that all traders, investors as well as stock market investors, who feel afraid, occ
Most viewed articles in this category:
- Investor Stress: A New Approach
George Muzea is both an investor and a stock market advisor. In any given month, he will be paid $10 - Real Estate Investment Financing
1. Location: Your real estate investment's location is arguably the most important component of your - Canadian Oil Sands - Who Are the Major Players
The Canadian oil sands represent one of the most lucrative investment opportunities to oil and gas i - Why Bulk Preconstruction?
Bulk preconstruction is the latest trend in secure, high profit real estate investing. By buying wit - Investing - It Is Not As Scary As You Think
Many people want to have more money - OK everyone does. However, most people don't know how to go a - How Do I Know Which Programs Are Scams?
Although it is virtually impossible to tell if a HYIP is a scam until the moment when they stop payi - Currency Trading Success - 6 Tips to Increase your Profits
If you want to increase your profit potential and achieve currency trading success then the simple t - The Business Cycle
Investors who want to beat the market should be followers of the business cycle. The business cycle - Pros and Cons of Real Estate
Like any other profession, there are good and bad things about what are available. Each of the thin - The Fixer Upper
Real estate investing has become almost a national pastime. Millions are made every year on the buyi