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I had not heard the term dragonfly before. thanks for bringing to my attention. I have a lot of experience with candles but this was a new term. TOPP had a dragonfly yesterday. I just now discovered that. So too late to enter now...
OPWV may be putting in a shooting star today.. Need to finish like this and then confirmation on Monday..
I have used them exclusivly for the past ~5 years. I like to look at chart reading as an ever changing art form. Meaning that each person can have a different view of a chart at any particular time. I feel candles help give the chart reader a more 'colorful' view of what is going on. I still have to look up what specific candle patterns mean but as you get accustomed to looking at candles you will get used to looking at them and their patterns. The main thing that I view with candles is the bodies and their wicks and the relative size of each. This tells a lot about price action in itself without knowing all the fancy names for certain candle patterns. I find seeing where a wick is in comparison to where the body is; is helpful in seeing the art behind the action. Volume is important too with looking at candles; some people dont think so but I think volume is a great T.A. tool. Helps you to ferret out strong hammer bottoms or even good reversals or patterns developing. One of the many tools a trader has.
I'm in the health profession and when diagnoising a condition 'tools' come into play in helping determine what is going on with that individual; just as candles are a tool to help you decide what is going on in the price action.
You mentioned OPWV as a possible shooting star. For the first half of the trading day, that is how it looked. Just a nice spinning top with it's body above the previous close. Later in the day and at close, it closed considerably lower.
Can you consider it as a shooting star with bearish confirmation later in the same trading period, or do you look at the entire day before making a call?
Also, how do you scan the stocks to pick one? ie where did you find TOPP?
I would say opwv ALMOST turned into a dark cloud cover since it came down to close at top of the prior bars body. Which makes me think opwv short term bearish. I would not short opwv after looking at 20 day ma. Rather if I were long I would sell.
I happened to find TOPP because a friend asked me to look at daily..
I use tc2000 and write my own scans to find candle patterns.
Over the years, I have come to blend candlesticks with numerous other indicators to get the bigger picture. There is a dangerous allure to focusing on just one technical indicator and attributing more explanatory power to it than it warrants. The way I look at it, it is but a single tile in the entire mosaic of decision-making.