Japaness candlestick help!

[Dr PennyStock]

I'm still fascinated how Doc knows his stuff but he's still a pattern expert but in a different area. The area of candle analysis.

I think if Doc can read the candles so well on these volatile and somewhat manipulated pennys his fine tuned intuition would do exceptionally well on more stable stocks.

I'm trying to learn as much as I can from you Doc

Yes, my area is candles, candles are important to short-term traders, patterns is more to long-term investors.

My T/A works much better with stable stocks, but, I haven't patience to wait 1 or 2 weeks to make 5% profit, I am here also to amuse my self, I love to trade penny stocks, I love to feel the adrenalin run in my veins when a penny stock make a spike of 100% in just minutes, volatility, momentum, this is what I like.

[tu]

Yes, I have interest in dabbling a little in daytrading but want to become familiar with momentum and price moves. I don't have the time to be glued to the screen as much as I would like but prefer to buy and sell anywhere from a day to a few days.

I would just love to be able to trade stocks like you and say for instance, take a day off and go to the beach or a short trip for a break to come back all rejuvenated and ready to go.

I'm also learning, as a junior trader, the impatient aspect of this game. I'm not patient but am training myself.

Your post pretty much summed up what I was thinking and if you're doing this good in these hard to analyze situations and having fun at the same time, I believe I'll be a student for a long time.

So, you don't mind if I ask you silly questions about candles do you?

[Dr PennyStock]

Ask every time you need, I am here to clarify your doubts.

[tu]

OK Doc, I'll take advantage of the opportunity to ask a question about candles with long wicks.

When prices are ready to move up from downtrend, many times I notice a candle or candles with long lower wicks.  The same with the opposite on uptrend reversals but only having long top wicks.

I feel I'd rather ask you instead of purchasing a book since I value your opinion.

I read somewhere that long lower wicks many times are stops being triggered and bought out cheap in anticipation that the security will soon make a move up.

 What's you view on this?

[Greg]

OK Doc, I'll take advantage of the opportunity to ask a question about candles with long wicks.

When prices are ready to move up from downtrend, many times I notice a candle or candles with long lower wicks.  The same with the opposite on uptrend reversals but only having long top wicks.

I feel I'd rather ask you instead of purchasing a book since I value your opinion.

I read somewhere that long lower wicks many times are stops being triggered and bought out cheap in anticipation that the security will soon make a move up.

 What's you view on this?

High Tu, welcome to the board from Baton Rouge , Louisiana

Try _ http://www.candlestickforum.com/PPF/Parameters/16__/candlestick.asp

[tu]

And a thankyou to you Greg from N.S. Canada.

Vegas directed me to your URL a couple times. I forced myself to be patient and leaf through the links.

Actually, as I'm writing this I have a page saved on a tab from that site on the common Q&A's that I'll be reading shortly.

 

[Dr PennyStock]

The best reversal candles are the high waves and dojis, just look this chart below and look the candle that made low at 1.93 a few days ago and another one 6 months ago with a low at 3.02, both are high waves, they are powerful reversal candles.

http://stockcharts.com/h-sc/ui?s=VC&p=D&b=5&g=0&id=p69975478856

[tu]

So all the candles in July with the long lower wicks in an extremely over-sold environment is another indication of a strong reversal in play.  Correct?

Also the high wave of 4.190 in March 22nd-23rd area was a test of a possible area that it might reach in its move up.  Is this a correct analysis as well?

And do you like IFLI  because of the similarities to VC.

And by the way, VC looks like it's in a prime position for purchase.  Am I right?

[Dr PennyStock]

So all the candles in July with the long lower wicks in an extremely over-sold environment is another indication of a strong reversal in play.  Correct?

Yes.

Also the high wave of 4.190 in March 22nd-23rd area was a test of a possible area that it might reach in its move up.  Is this a correct analysis as well?

That is not a high wave, that is a normal candle, a high wave has wicks (shadow is the correct name) to both sides, up and down, 4.19 is just a resistance point, like others, any resistance point is a possible top if a run happens, this one is not special. The analysis is correct.

And do you like IFLI  because of the similarities to VC

Absolutely not, each stock is different from all the others, never compare stocks, it's one of the biggest mistakes I see people do all the time, like "this is the new TMA", or, "another TMA run" when speaking about other stock, this is very wrong.

And by the way, VC looks like it's in a prime position for purchase.  Am I right?

Not anymore, it's touching resistance points, the buy point was at 2, this is the sell point.

[tu]

Thanks for the response Doc

I still see a very short candle with a very long upper shadow in VC  on the daily chart at the March 22nd-23rd area.

Yes, the candles are the important thing, not using any chart as a proxy to assess another, I agree.

Regarding resistance in VC, have the long sideways movements from November to June basically created very strong resistance and or support lines?

OH by the way, how do you paste previous comments in a post? 

[Dr PennyStock]

I still see a very short candle with a very long upper shadow in VC  on the daily chart at the March 22nd-23rd area.

Yes, but this candle is not a high wave, is just a white candle with a long shadow because it retraced much from the high of the day.

Regarding resistance in VC, have the long sideways movements from November to June basically created very strong resistance and or support lines?

Yes, 3.22 and 3.25 are now resistance points, also 3.38 and 4.30 (very strong), was because of this resistance that the stock retraced so much from 4.19 at the March 22nd.

OH by the way, how do you paste previous comments in a post?

If you want to quote an entire post, is just click the reply buton and after that click the link "Insert Quote" on the right side of every post.
If you want to do like I did, quote just a sentence to respond only to this sentence, you need to copy the sentence or sentences, click the button "insert Quote" above the smilies, and paste between the quote and /quote.   

[Jack]

Doc, I would ask You about an inverted hammer. In Your blog today You mention MWA who made an inverted hammer. It is a red one. Is there any difference if it is a green inverted hammer? Such as APPY did Yesterday.

[Dr PennyStock]

What APPY did yesterday is not an hammer, it's a normal white candle, to be an hammer, it needed to close below the open, also, even closing below the open, it would be an high wave because the shadow is too long to be an hammer.

An hammer is a short candle with a short shadow and the difference between the open and the close forms a small square, but, is always a negative close, the close is always below the open.