Occaisional Candlestick Report

[darth trader]

Followers of japanese candlestick patterns will know that morning and evening star patterns are both rare and highly predictive.

I nearly posted a few days ago when ARM Holdings gave a morning star pattern but I thought that it might have failed.

However today WPP has given a morning star too.

Is there a rally on?

 

[ChartMan]

Well , yes, for the last two days anyway.There was certainly a number of stocks closing at their High Of the Day, having rallied strongly all day.
Why not post your obsevations/suspiscions anyway- no-one is going to laugh if you get it wrong.......You never know, you might make someone very happy!

 

[Guitarman]

Darth,

Can you describe amorning star please. I'm new to candlesticks and would appreciate the help.
Thanks

 

[Uncle]

Welcome to the club Guitarman. You have certainly come to the right BB if it is your desire to learn more about Tech Analysis.

Defination of "Morning Star" - a major bottom reversal pattern formed by three candlesticks. The first is a long black real body, the second is a small real body (white or black) which gaps lower to form a star, the third is a real white candlestick that closes well into the first session's black real body.

You will of course need a programme in which your charts can be displayed in candlstick format - such as Metastock or others.

Good luck in your trading

John

PS The bible on candlesticks is "Japanese Candlestick Charting Techniques" by Steve Nison and can be obtained through most booksellers or online.

 

[ChartMan]

How about an example chart to go with it John?

 

[Guitarman]

Thanks for the reply. I have the ability with my software to use candlesticks, but I don't yet fully understand and appreciate their contribution to the whole TA picture.


Regards
Aidan

 

[Uncle]

Martin.......if I wasnt such a tech dummy, would oblige with the chart, bult alas I do not have a clue how to cut and paste into T2W.

John

 

[CHARTY]

Darth, any chance you can run this report again, please? If you come up with any stock, I will then do my analysis, for what it is worth.
Tks Charty


As far as WPP, the signal on the candlesticks proved to be very good, as any signal on candlesticks, it is only valid for no more than 3-4 sessions.

There was also a hammer on the 4th April.

There are plenty of patterns on candlesticks.
I have already expressed my modest view that Nison's book is at the same time great and all you need.

Technical analysis should be simple and fun. Nison makes candlesticks both fun and easy to spot.

 

[darth trader]

I've been away for a while and just noticed this thread.

Thanks to all for keeping the thread going. I have to agree with much of what has been said.

Candlestick definitions are subjective and one persons morning star may not be anothers.

I've been using the standard metastock functions morningstar(), eveningstar() etc to identify my signals and since these are so rare I don't check these with other indicators - just a visual confirmation.

We don't have any more signals since WPP but there is a list of recent morning/evening star signals:

ARM 5
Marshalls 5
Interserve 7
MacDonalds Hotels 23
Telemetrix 24
Logica 33
Bookham 57
Psion 58

 

[ChartMan]

For Uncle...

Get your chart on the screen......press " ALT and Print Screen" ( above the 'insert' key). then open up paint shop pro or MS paint.
Select "edit, paste". This will import the picture to PSP or Paint.Crop to size( if required) and do "file save as 'GIF'"..ie MONI150401.gif
Now, when you submit a new post, below the main box where you are typing the body of the post, there is a box with "BROWSE..." Click on that and goto the folder where you saved MONI150401.gif and double click that file.You will see the folder directory information appear in the box to the left of the "browse" box.
Now click "Submit Reply" in the usual way and hey presto, there will be your chart!
Go for it.......

 

[zippy]

I have recently acquired Steve Nison's book on Candlesticks and have read your above post with keen interest.
I have looked through the AIQ Basic EDS routines but have not been successful in locating the basic routines for morning or evening stars.
Any help would be greatly appreciated.

 

[darth trader]

Sorry I don't know AIQ but even if no standard function exists you could write an EDS that checks for open and close prices over three days.

 

[Guitarman]

Zippy,

You should have some candlestick routines under Basic Indicator Strategies/Candlesticks in EDS.
I only have a routine for a Dojistar, which being new to candlesticks am not sure whether this is the same as a morning star!
The EDS script however is...
DojiStar if val([open], 1) = val([close], 1) and Val([open], 1) < Val([low], 2).

Aidan

 

[darth trader]

a dojistar is a two day pattern with a large body followed by a doji (small body).

Wait for confirmation before trading a dojistar though from your code you can see how it would be possible to code a 3 day pattern using gaps and open/close values.

 

[zippy]

Candlesticks

Thanks Guitarman for your heplful comments.

Darthtrader I simply don't have the programming skills to construct something as simple as that.