Teach A Man To Fish And.........

[nitinandini]

good going for me. i'm really learning the basics, and enjoting too

 

[Satyen]

Thanks a Lot for Articles by you and Traderji


Regards
Satya

 

[Saint]

For a revision of sorts about Candlestick Charting........

They are not absolute.......but they can prove to be some sort of a guide.Will be a helpful add in the beginning.....

Just go here... http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_candlesticks

Saint

 

[Saint]

KICKER SIGNAL
( Keri Ashi )

--from the Candlesticks Forum---

Description

The Kicker signal is the most powerful signal of all. It works equally well in both directions. Its relevance is magnified when occurring in the overbought or oversold area. It is formed by two candles. The first candle opens and moves in the direction of the current trend. The second candle opens at the same open of the previous day, a gap open, and heads in the opposite direction of the previous days candle. The bodies of the candles are opposite colors. This formation is indicative of a dramatic change in investor sentiment. The candlesticks visually depict the magnitude of the change.

Criteria

--The first days open and the second days open are the same. The price movement is in opposite directions from the opening price.


--The trend has no relevance in a Kicker situation.


--The signal is usually formed by surprise news before or after market hours.


--The price never retraces into the previous day's trading range.

Signal Enhancements

The longer the candles, the more dramatic the price reversal.


Opening from yesterdays close to yesterdays open already is a gap. However, gapping away from the previous days open further enhances the reversal.

Pattern Psychology

The Kicker signal demonstrates a dramatic change in the investor sentiment. Something has occurred to violently change the direction of the price. Usually a surprise news item is the cause of this type of move. The signal illustrates such a change in the current direction that the new direction will persist with strength for a good while.
There is one caveat to this signal. If the next day prices gap back the other way, liquidate the trade immediately. This does not happen very often, but when it does, get out immediately.

Now have a look at the Sensex the two days (Tuesday and Wednesday).......these are powerful patterns.Whether you took part in the move,or sufferred from it,either way commit it to memory .......and take advantage of it the next time it happens.

And as powerful as the Bearish Kicker is the Bullish kicker....

All the best!
Saint

 

[Saint]

The Sensex charts with the Kicker Signal!

How to trade it?

Basically a neat pattern to trade and if it works,probably to get out that same day,or at least most of your position.

Simple logic......basically,we got a bullish bar the previous day.Everyone is looking to new highs,but here comes the shocker of a gap the following day back to the previous day's open.Shock turns to disbelief and then panic.........and as the bearish bar forms,the trader shorts and makes profits.

From a trader perspective,short the low of the first 5min bar with a stop at the high of that bar.......and you could add to your positions once the previous day's low was taken out as well........And then trail stop downwards as per your strategy.

From a swing perspective,would this lead to a further fall in coming days?Depends,maybe,probably.......but take off two thirds or three fourths at least on that bearish day,and then bring stop down on the remaining to the high of that bearish bar.

All the best!

Saint

 

[Saint]

A Bullish Kicker on the Sensex --June 15th 2006.

Saint

 

[uasish]

Will remember from now onwards,so you also use MS.

 

[phoenix]

Thanks Saint!

Phoenix

 

[gandharvashu]

Again thnx Saint!

 

[gobatman2001]

Thanks! Saint,

Great to see you back in full flow.

Cheers