Replies to post #95 on Candlesticks (CANDLE)

[sarals]

That's great stuff omnitrader. Your explanation and chart clearly show what you are talking about. I'm definitely going to keep my eye open for that setup.

Thanks for taking the time to put that together for us.

[Ruellit]

Fantastic post Omni, it opened my eyes up concerning yet another way to use the 50% rule for trading. I had been using the 50% rule on a longer term. I had been using it as an indicator for re-entry into a stock after it had already run up substantially. More clearly, POSC had earlier run from 0.08 to 0.19, I figured it would retrace back to around 0.10 to 0.12 before continueing it's upward climb. In fact it went all the way down to 0.065 and quickly bouced back to 0.08 where it sits today. I've played this stock twice and had winning trades both times. Currently sitting on my third buy of it at 0.08 and starting to get a little nervous about it as it seems to be loosing favor.

Nice trade on YPNT!

[razal]

So using the same logic, would you have exited SSTY on Friday--or do you count the previous two days in this case and Friday's action stayed above the 50% of the previous two days?

[bbgold]

Hi Omni
A late reply but I am waay behind on keeping up with the board. A 50% price retracement is fairly common IMO. From the chart relating to this post you are looking for a 50% retracement of the candle Body whenever there is a major day? I will have to keep an eye on that. Do you then set a stop loss limit anywhere below the 50% retracement, if it fails? Thanks Omni :^)