Candlestick shadows/wicks

[glebecki]

Do candlestick shadows/wicks and their position relative to one another (higher/lower) offer any clue regarding direction of a breakout during a sideways move?

thanks, --george

 

[jiggly]

Do candlestick shadows/wicks and their position relative to one another (higher/lower) offer any clue regarding direction of a breakout during a sideways move?

thanks, --george

check the historical data, and see if you can spot anything consistent, which you can use.

 

[Masquerade]

Sometimes yes, sometimes no. Check the bias.

 

[Splitlink]

Do candlestick shadows/wicks and their position relative to one another (higher/lower) offer any clue regarding direction of a breakout during a sideways move?

thanks, --george

I don't think so. Pins are well thought of but there are so many of them that I believe that what is seen is done with hindsight. Myself, I find pulbacks useful but don't need a candle, particularly, to identify one. A bar will do just as well and, if it is the close that you are looking for, what is wrong with a line chart? That will cut out all the unwanted data which can confuse, sometimes, more than help an analysis.

 

[tomorton]

george - I don't see this either. In fact, at the risk of generalising, the dramatic market moves tend to be reversals, and these need to emerge from a trend, hopefully with a reversal signal, which also needs to occur at the end of a trend. But a range is not a trend, so don't expect a signal. Even though candlesticks give 4 significant price levels, OHLC, and their use gives more weight to the O-C 'real body' element, the close is always the most significant price of any session.

 

[glebecki]

My intention was to pickup a clue to anticipate the direction of a break out from consolidation on a 5 minute chart.
Thank you, tomorton, Splitlink, Masquerade,jiggly for the helpful input.

--george

 

[Splitlink]

Call it a head and shoulders, a failed high or a pullback, they all point to the same thing. The most recent high, if it is lower, points to a change of direction. It can be seen, in hindsight, time and time again. Why is it missed, then, by so many of us? It's a puzzle and I wish you luck with it.

Split

 

[glebecki]

Wow, Split. I sense a deep truth in your recent question: "Why is it missed, then, by so many of us?"
Not very encouraging, the bitter truth is. I will paper trade break outs over the high in consolidations on a 5 minute chart to see if I can unravel the puzzle. Thanks for the well wishing, take care, --george

 

[disi]

Do candlestick shadows/wicks and their position relative to one another (higher/lower) offer any clue regarding direction of a breakout during a sideways move?

thanks, --george

Wicks can tell you which side has more power. Wicks mostly tell us that people who were pushing in direction of wicks did not succeed and were stopped. That is potential signal that the other side has more power.