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     kaveman
Member
Username: kaveman
Post Number: 83
Registered: 11-2002Rating: 
Votes: 2
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| | Sunday, May 01, 2005 - 01:12 pm: |  
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Thought I would post some ideas based on my charting experience on the use of pattern trading.
Rules for using patterns
1. Use Highs with Lows, or Close eith Close but not combination of.
2. Never use the last bar to form the pattern.
3. Patterns are not always perfect formation. Don't be worried about excluding intraday spike prices that may be out of character of the majority of bars.
4. Check some history of the chart to see if this is a common recurring pattern, this may give you a clue as to its validity for that stock.
5. Never presume that the price will break out in the direction you expect, patterns are like any other method and have statistical basis for results. Just because they like to call it a bullish pattern does not mean it will definitely become a bullish result.
6. A definite trend needs to be in place prior to the pattern occuring. A long sideways trend can produce many patterns that actually mean very little.
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ord
Member
Username: ord
Post Number: 3
Registered: 08-2004Rating: N/A
Votes: 0
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| | Wednesday, June 01, 2005 - 10:05 pm: |
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heellp! what am I missing here?
DEG ax has a rising candlestick chart but its all red,
what am I missing here?
the lights on the hill are atracting me to the truckstop
ord}}}
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longshanks
Member
Username: longshanks
Post Number: 95
Registered: 11-2004Rating: N/A
Votes: 0
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| | Thursday, June 02, 2005 - 12:36 am: |
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kaveman,
Thanks for the post. Could you spell out your first 'rule' again mate? Sorry, just not 100% on what you mean.
Many thanks
ls
PS Perhaps as a personal addition....after looking a little into OW's Volume Spike thingy, it led me into "standing back" and looking at the bigger picture (2 to 3 years weekly) to see what's going on.
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longshanks
Member
Username: longshanks
Post Number: 96
Registered: 11-2004Rating: N/A
Votes: 0
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| | Thursday, June 02, 2005 - 12:49 am: |
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Re: "standing back", here is an example.
AMP came up on my Moving Average scans recently. Looked OK...but then I had a look at the long term...
just shows...it's not a bad idea to look at the whole picture...
ls
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oldwombat
Member
Username: oldwombat
Post Number: 814
Registered: 04-2004Rating: 
Votes: 3
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| | Thursday, June 02, 2005 - 03:43 am: |
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ls
I have had a discussion about this before on one of the other threads but if you want to look at charts loooong term it really is a good idea to wack them into log and not lin. You see the contours better.
Looking at the chart you have up there it looks like a very good company NOT to be in.
I have put the same time scale up in log. I reckon this little darlin may aim to please in the very near term. Once it gets over that long term overhead resistance at about $7.00 give or take. Could be wrong but.
Cheers
OW
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oldwombat
Member
Username: oldwombat
Post Number: 815
Registered: 04-2004Rating: 
Votes: 1
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| | Thursday, June 02, 2005 - 04:02 am: |
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ord
Red candles just means its closing price was lower than its opening price. It doesn't have to be going down to have red candles.
I reckon there might be better stuff around than this one for you. Looks like a whole lot of people walked away from this some time ago. Lots of overhead resistance
Cheers
OW
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007
Member
Username: 007
Post Number: 98
Registered: 05-2005Rating: N/A
Votes: 0
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| | Thursday, June 02, 2005 - 04:28 am: |
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Ord,
try changing to an OHLC chart. Most of the red turns to green. That might make you feel better.
I think there's a good chance you will encounter strong resistance at the 0.30 mark confirmed by the falling 50SMA.
All the best.
007
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oldwombat
Member
Username: oldwombat
Post Number: 816
Registered: 04-2004Rating:
Votes: 1
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| | Thursday, June 02, 2005 - 05:07 am: |
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G'day 007,ord
Or if you are a supreme optimist....you could look at it this way.
Cheers
OW
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longshanks
Member
Username: longshanks
Post Number: 97
Registered: 11-2004Rating: N/A
Votes: 0
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| | Thursday, June 02, 2005 - 09:37 am: |
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OW,
Thanks for the log look tip.
Cheers
ls
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kaveman
Member
Username: kaveman
Post Number: 86
Registered: 11-2002Rating: N/A
Votes: 0
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| | Thursday, June 02, 2005 - 05:07 pm: |
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Longshanks
1. Use Highs with Lows, or Close with Close but not combination of.
This was just that you can find patterns using highs and low prices, of using closing prices only. But do not mix the two together to create a pattern. Sorry cannot just come up with a chart example, but do not join H-C and C-L to form lines just because that combination forms a nice triangle
btw what did the other posts refer to?
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longshanks
Member
Username: longshanks
Post Number: 98
Registered: 11-2004Rating: N/A
Votes: 0
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| | Thursday, June 02, 2005 - 05:44 pm: |
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kaveman.
"btw what did the other posts refer to?"
If you mean my reference to OW's Volume Spike, check it out at
http://forum.incrediblecharts.com/messages/294699/477298.html
Cheers
ls
mmm...just looked at it again. You said posts plural...sorry not sure.
(Message edited by Longshanks on June 02, 2005)
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oldwombat
Member
Username: oldwombat
Post Number: 818
Registered: 04-2004Rating:
Votes: 1
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| | Thursday, June 02, 2005 - 08:19 pm: |
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Longshanks, they won't see it mate....probly cos they aren't meant to. Don't flog a dead horse or kcuf a lively donkey. Either way you can get it in the sllab BIG time. You don't want that to happen to you....DO YOU?????
OW
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longshanks
Member
Username: longshanks
Post Number: 99
Registered: 11-2004Rating: N/A
Votes: 0
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| | Thursday, June 02, 2005 - 10:06 pm: |
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Come now OW....roll over and I'll give ya a tummy scratch.
With ya fella...not against ya.
Cheers
ls
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oldwombat
Member
Username: oldwombat
Post Number: 821
Registered: 04-2004Rating:
Votes: 1
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| | Thursday, June 02, 2005 - 10:37 pm: |
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