No insult whatsoever. I have been asking for the analysis bit for quite some time as it was a missing link. MO and MM is reasonably clear but you could expand further. Please let me know if you have other recommendations to expand this area.
I have ordered the book from Amazon.com.
Scientific Interpretation of Bar Charts
John R Hill
Seemed to be only 1 left (though not sure). However, seeing it's coming from the US, it could take a few weeks.
Now do you expect others to know this? I mean, I have my doubts that many here would know about compound formations in bar charts. Also, is there a big difference between bar and candle charts? They both display high, low, open and close (I prefer candles).Ignored
Chinese Lunar New Year around the corner , so ......
Well, zoran, learning patterns is a life long pursuit, many researchers have wrinkles on what they observes, some are universal while some are localised to the certain markets. Generally the foundational basics like key reversals , inside outside days, island reversal are common and availble to most analyst. Most good chart pattern books have them. As you observe and learn more will come to the you, and become an additional arsenal in your tool box.There is no necessary to mimic anyone.Anyone who cannot read these cannot be invoked into the grouping of technical analyst, as its the foundation. So please read wide as there are many schools due to wrinkles.
Candle charts are essentially bar charts, the major difference that the candle bar, shades the body of the open and close range. this gives a better visual feel of the ranges of the trading between the open of the bar and where it close. In candle analysis the tails/shadows become visually significant thereby giving some important clues when used in a bundle of bars. For the trained, it is also visible to the bar chartist. At the end od the day, it depends on the user orientation and preference.
These patterns prompts clues of the immediate possibilities, but if used as a predictive model, it kills the analysts nimbleness in mindset. Thats where many analyst fail. So non filial to basics tends lead creative minds to deceive themselves. esp so in rigidity in mindset. Like I said, the patterns grow into each other, one bar at a time . And analysis have to be done to continuily to decepher the incoming info. There's no such thing as one analysis, and the strategy is determined. Of course , lazy and ego traders, system sellers and fortunetellers like to use them that way. Not forgetting people who are not focus in the endeavour.
Well, rigidity is not clearly right or wrong. Its all grey. When dealing with dynamic and changing environments, just that there's a price to pay in the long run.