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     hershy
Member
Username: hershy
Post Number: 922
Registered: 10-2002Rating: N/A
Votes: 0
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| | Sunday, October 09, 2005 - 10:48 am: |  
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Doji's usually occur at pivot points and show indecision bu both buyers and sellers. Neither group knows where to go from here and they agree to disagree and the tug of war finishes in a dead heat. The share prices closes exactly where it has opened.. What happens next is the direction indicator.
To trade a chart such as this is not easy. One can go long or short, depending on the overall strength or weakness of the chart. This is a snapshot from the SBM chart, a chart that is very bullish, except for the retracement of the last week. So the smart money would argue that the trend prevailing trend will continue unless the weight of evidence will show otherwise. if you want to trade SBM, the suggested course of action is as follows:
If you want to short, buy one cent below the doji's low IF it trades that low and if you want to go long you place your order one cent above the doji's high. Obviously, if you are not a day trader, contingency orders would be the way to go here.
The road to success is usually under construction.
http://members.optusnet.com.au/~hershy/
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hbeedee
Member
Username: hbeedee
Post Number: 75
Registered: 09-2005Rating: N/A
Votes: 0
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| | Sunday, October 09, 2005 - 08:35 pm: |
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Hershy
I look at dojis as a signal for me to put a stock on my watchlist so I can monitor it for the next day or so. I must be a lot more timid than you. Using a doji as a trading trigger is too much for me. It's too much like trying to pick the bottom or the top. But I salute you.
Cheers
HBD
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hershy
Member
Username: hershy
Post Number: 927
Registered: 10-2002Rating: N/A
Votes: 0
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| | Monday, October 10, 2005 - 07:54 pm: |
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HBD,
One episode does not prove a point but I was right THIS time.
But let me explain as I could just as well have been wrong.
Candles only "suggest" direction of travel and this suggestion is only valid for 2 to 3 days. A doji suggests indecision and the perimeters of this candle give a range ( Yes Captain Obvious !!!) If the price moves outside the range, there is a good chance that for the next one to 3 days, that direction may continue. After that a trader must take new measurements to see where the price may go. A day trader, using this doji as a trigger would have made a nice 4% ROI. Suckers like me, who place contingency orders, missed out.
The price moved too fast. Same story with DOM, missed there too. Picking them is one thing, getting a piece of the action, another. this is why I think paper trading is useless.
(Message edited by Hershy on October 10, 2005)
The road to success is usually under construction.
http://members.optusnet.com.au/~hershy/
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hbeedee
Member
Username: hbeedee
Post Number: 77
Registered: 09-2005Rating: N/A
Votes: 0
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| | Monday, October 10, 2005 - 09:31 pm: |
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Hershy
Now we are on the same page. I agree that a doji can be a trigger. If one is prepared to gamble a bit (not that I am saying that you are a gambler).
Yesterday I gave up my morning and went to a share trading seminar to listen to Louise Bedford. She recommended looking at any very small bodied candle (including a doji) as a possible trigger. But she also said that for most of us it would be better looked at as a trigger for the real trigger. In other words, once we see the doji, keep a very close watch because it is the candle after the small bodied candle that shows us our entry..
I can see that a day trader would most likely use the doji and would be satisfied with a 4% return. Speaking personally my stress level would not cope. So I could never be a day trader, I don't think. And I would like to think that I would be more satisfied with a little larger return gained over a slightly longer time frame. So would rather trade options or CFD's over a few days or weeks. Just me and my attitude. I have lived a life where every minute counted. I don;t have to any more so i am not going to.
But thanks for the information and advice. I have added it to my knowledge base.
Cheers
HBD
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stickman
Member
Username: stickman
Post Number: 406
Registered: 05-2004Rating: N/A
Votes: 0
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| | Tuesday, October 11, 2005 - 09:13 am: |
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Hi guy's
a set up i use for short term trading is to buy above a nr4 in side day, and stop below ?
What makes this pattern so successful?
For one, an inside bar means that there was just not enough interest in the stock to move it decisively one way or another. As sure as day follows night, so does an increase in volatility follow the restricted trading of an inside day. The stock becomes like a race horse ready to hit the ground running out of the gate.
The other half, the narrow range bar tells us that the stock has consolidated relative to it's recent action.
The third major axiom
on hope
when the ship start's to sink'
don't pray. jump
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hbeedee
Member
Username: hbeedee
Post Number: 78
Registered: 09-2005Rating: N/A
Votes: 0
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| | Tuesday, October 11, 2005 - 12:07 pm: |
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Morning Stickman
I understand that Nr means narrow. And that inside means a candle that opens and closes inside the open/close of the previous period. But what does the 4 mean? I have had a look at AZZ in an IC chart. I can see the inside candle. But I did not see the 4 bar grid that you have connected to your note on your chart above. So I am assuming that it is your inclusion. The IC candle chart shows a single small green candle inside a single larger green candle for the period before. Your chart does not seem the same. Clearly it is a different type of chart. That isn't a problem.
I watch your posts regularly. In this one, I am just a little lost. Hence my request for an amplification.
Cheers
HBD
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stickman
Member
Username: stickman
Post Number: 407
Registered: 05-2004Rating: N/A
Votes: 0
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| | Tuesday, October 11, 2005 - 12:24 pm: |
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Hi hbeedee
the 4 means the smallest range in the last 4 days? i don't use candle's much
today's price opened above yesterday's nr4-insideday and as long as it closes above i will buy with a stop below today's low
hope that help's sometime's i struggle putting word's to paper ?
cheers
The third major axiom
on hope
when the ship start's to sink'
don't pray. jump
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stickman
Member
Username: stickman
Post Number: 409
Registered: 05-2004Rating: N/A
Votes: 0
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| | Wednesday, October 12, 2005 - 01:27 pm: |
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Hi here is a up dated chart
cheers
The third major axiom
on hope
when the ship start's to sink'
don't pray. jump
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stickman
Member
Username: stickman
Post Number: 411
Registered: 05-2004Rating: N/A
Votes: 0
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| | Wednesday, October 12, 2005 - 06:20 pm: |
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Hi
here is another a candle chart shown this time
cheers
The third major axiom
on hope
when the ship start's to sink'
don't pray. jump
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danielc
Member
Username: danielc
Post Number: 46
Registered: 09-2003Rating: N/A
Votes: 0
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| | Wednesday, October 12, 2005 - 06:53 pm: |
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good stuff
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hbeedee
Member
Username: hbeedee
Post Number: 79
Registered: 09-2005Rating: N/A
Votes: 0
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| | Thursday, October 13, 2005 - 09:36 am: |
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Hi Stickman
It's obvious when you know how.You have just added another bit to my knowledge base.
One little question, though
How often do these nr4's appear. Regularly of not?
Cheers
HBD
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stickman
Member
Username: stickman
Post Number: 413
Registered: 05-2004Rating: N/A
Votes: 0
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| | Thursday, October 13, 2005 - 11:07 am: |
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Hi HBd
how oten do they appear ? often enough
they don't always go to plan but stop's see to that
this is just another tool i use to trade
here is another below yes it's already bolted and i was happy to be on it
i will post more when i find them the good the bad and the ugly one's
cheers
The third major axiom
on hope
when the ship start's to sink'
don't pray. jump
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hbeedee
Member
Username: hbeedee
Post Number: 80
Registered: 09-2005Rating: N/A
Votes: 0
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| | Thursday, October 13, 2005 - 11:55 am: |
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Hi Stickman
I'll just bet you were
I will keep a look out for more mentions of Nr4's from you
Cheers
HBD
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visions
Member
Username: visions
Post Number: 1
Registered: 09-2005Rating: N/A
Votes: 0 |
