On 15 February, Swing Trading Blog | What are the best models of candlestick for shorting Stocks?

Written on 15/02/2008 08: 52 by Craig

If you could only trade 3 candlesticks for shorting stocks, what would they be?

I asked this question by email and it me did not take very long to find an answer. I trade again and again the same candlestick patterns!

Here are my top 3 bearish candlesticks:

It's my favorite of all time on the short side. The key of this candlestick pattern is in having a long tail and a small real body. A rally to a major resistance area and an increase in the volume of the previous day are other factors to consider.

I want to see this model after a very quick to move backwards against the resistance. Give it an added value if it is located just beside a trendline down. I like the first spark plug to be significantly smaller than the second.

Lately, it seems that this model becomes more reliable. I love how this model retains the other traders on the wrong side of a move. It is a clear indication that the bulls have lost control. I want to see a deep penetration in this first candle.

I don't think that chandeliers are the Holy Grail for stock trading. In fact, I think that they are virtually worthless without other factors on the table to save the implications of these.

Factors such as...

A movement against a strong downward trend.A multiple "up-to-date" resistance rally.

So, what are your favorite candle holders to trade on the short side? Those that you find yourself trading more often?

On 14 may, Swing Trading Blog | Ichimoku cloud charts and graphics combination models

Written on 14/05/2008 16: 27 by Craig

StockCharts.com has published a new chart called graphics Ichimoku cloud type. This is what it looks like:

The first thing you will notice is the area of "cloud" which is supposed to serve as a "zone support/dynamic resistance for bouncing out price.

I received the following information from this site on Ichimoku charts... Ichimoku uses five separate lines or components, it should be used individually, alone, when decision making business, but rather used together to form a "whole" integrated portrait of the price action that can be taken "at a glance". Thus, a simple glance at a chart Ichimoku should provide the Ichimoku practitioner with an almost immediate understanding of feeling, dynamism and strength of the trend.

Here is a summary of some trading strategies of base that you can experiment with this trend following system (using the table above as a reference):

Tenkan Sen/Kijun Sen Cross: this is similar to any mobile medium crossover system. When the blue line crosses above the red line from below, it is a buy signal. When the blue line crosses below the red line from above, it is a sell signal.

Kijun Sen Cross: when the price crosses the blue line at the bottom of this, there is a buy signal. When the price crosses the blue line from above this, there is a sell signal.

Kumo in small groups: The Kumo is the "cloud" or the red and green shaded areas on the table above. When the price closes above the Kumo, it is a buy signal. When the price closes under the Kumo, it is a sell signal (short).

Senkou Span Cross: this one is fairly simple. In the table above you can see how the Kumo changes from red (downward) to green (optimistic) and vice versa. A purchase or sale signal is generated when this change occurs.

Chikou Span Cross: when the Green rail line the bottom price is a signal to buy. When the green line crosses by the high prices, it is a sell signal.

These maps are pretty cool looking, but I'm not really sure yet about the effectiveness they are. If you have experience with this method of charting, then please leave a comment or send me an email!

Written on 19/05/2008 13: 13 by Craig

Want more winning trades?

By combining traditional models of graph, models of priceand candlesticks, you can increase your chances for a successful transaction. Here's how...

Run your scans, you fall through this graph:

The first thing you will notice is the classic inverted head and shoulders chart figure. He already broke through the neck. This stock is in a decent uptrend.

Now Let's zoom for the reverse:

There are so many things that happen here don't know even where to start! But I'll give it a shot. Here goes...

Looking at this table, we were able to combine a classic chart pattern (long term perspective) with a smaller (perspectives in the medium term) pricing model, and then with a candlestick pattern (immediate outlook).

That's a lot of technical analysis on a chart!

Your not always go to find the beautiful tree. But when you do, you will not be able to enter your order fast enough to jump on the bandwagon! The point here is you would ideally like to see as much as possible factors in your favor to increase your chances for a successful transaction.

The more will be the best.