[Soultrader]

Short video from todays trading, March 19, 2007 using candle patterns and previous day high pivot.

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Charts created by Tradestation

[notouch]

I call that reversal candle an inverted hammer. Some people just call it a hammer (saying if it's the other way up it should be called an umbrella). Others call it a shooting star. Doesn't really matter what you call it. Later in the day was a good time for range trading with 500V bars.

What made you settle on 1500V candles?

[Soultrader]

haha yea inverted hammers. Im no good with cande names. I guess the afternoon was good for quick scalps but I only took that one morning trade the entire day.

I played around with the several different settings on the volume charts and I found bearish/bullish englufing patterns on a 1500v chart at key levels extremely powerful. Spent the entire weekend going over charts... and the 1500v also fits my risk parameter. I guess its traders preference?

[notouch]

Just checked my Nilson book. It was a shooting star because it occurred at the top of an uptrend. An inverted hammer is the same candle but occurs at the bottom of a downtrend. It's all nit-picking in my opinion. It was a reversal candlestick, that's what matters.

I find 1500V is usually a bit slow for me but as you say it's all question of preference.

[trader273]

To be technical, an inverted hammer is bullish, what you have is a shooting star. Not that its that important.( inverted hammer and shooting stars look the same though--I guess just to confuse people )

[Soultrader]

lol okay shooting star it is!! Anyways, all I know is that candle indicates reversal. The confirmation was the bearish englufing in line with Fridays high making this a short setup for me.

[walterw]

Hi Soul, I am curious, what did you mean when you sayed "volume dryed out here " I understand each and every bar stand for the same amount of contracts.... did you have other criteria there to determine there was less volume there ?:rolleyes: or at the last part... "low volume".. thanks Walter.

[Soultrader]

Hi walterw,

I was also looking at a 5min and 30min chart. Although price was lifting, we were seeing low volume rallies. The big boys or traders that matter to move prices were simply not around. I should of been more clear about it but I am always interested to see whether the big boys are supporting the move up or down. In the afternoon, they are simply not there.

Regarding my exit and how I mentioned low volume..... I was reading tape and tape was stuck in a traffic jam. Also, 1500v bars were starting to form extremely slow and told me that there was not too much interest on the supply side. Tape showed lack of supply once it hit below 265.. and it kept hovering between 263-267 for 5mins or so. I decided to book profits at that point due to the lack of volume and interest. Hope this makes sense.