Wednesday, February 13, 2008

Pattern Recognition

Recognizing candlestick patterns that prices carve out can help immensely with one's trading. The following is one which is comprised of 5 candles and is known as the Rising Three Method (the reverse of which is known as the Falling Three Method). Of course candlestick patterns can be very subjective and not always perfect in their formation. This rising three formation appeared in ACI this morning. It wasn't ideal in the sense that the 4th candle's shadow extended beyond the range of the 1st candles. Also, the close of the 5th candle wasn't above the first candles high range.

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