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- 1.Josef Lakonishok, Andrei Shleifer, and Robert W. Vishny, “The impact of institutional trading on stock prices,” Journal of Financial Economics 31(1992), 42.Google Scholar
- 2.Thomas Bulkowski, Encyclopedia of Candlestick Charts (Hoboken, NJ: Wiley, 2008). This book is the result of the author’s study of thousands of candlestick trades, and Bulkowski concludes that the engulfing pattern is highly reliable. The bear engulfing pattern leads to reversal 79% of the time, and the bull engulfing pattern leads to reversal 63% of the time. Two additional signals of exceptional reliability are the bullish three white soldiers (82%) and the bearish three black crows (78%). Less reliable signals approximating fifty-fifty reliability include the bull and bear harami (both leading to reversal only 53% of the time) and the gravestone, dragonfly, and long-legged doji (51% average). Source: http://www.thepatternsite.com.Google Scholar
© Michael C. Thomsett 2013