Stojakapimp's Candlesticks

[stojakapimp]

Well I'm a fairly new investor and have absolutely nothing in my portfolio to brag about, but I've been doing lots of research and have been programming like crazy to try and get myself that elusive edge. I've been paying closer attention to candlesticks lately, and have written a couple of Matlab programs to find certain candlestick scenarios. I thought that I'd share these with you all. Like I said, I'm a new investor, so take my tips with a grain of salt and do what you'd like with them. Without further ado:

All of these are a bullish engulfing scenario. My program spit out 44 stocks at me that meet this criteria, but I've hand selected only a few of them.

OMTR - Long white candlestick that traded on high volume. Worth watching.

PDII - Another long white candlestick whose open was much lower than the previous day's close, yet still came back to engulf the previous day. From what I read that's a strong sign.

OYOG - Not the longest white candle, but there's two reasons I really like this one: (1) The RSI was just below 25 a couple days ago, so it was oversold and is making it's way back up, and (2) It traded a high volume during the engulfing day. So far it's up almost 8% today, so it's worth watching to see if it keeps climbing.

ICLR - Another typical formation, and it also possibly bounced off support at its 100 day SMA.

AFOP - A long white candlestick that's similar to PDII, where it opened much lower than the previous day's close, but came back to engulf it.

So those are my picks for now. With all of these, they should be watched for a couple days to confirm a breakout. Confirmations would be a large white candlestick, a gap up, or high volume (as I read on StockCharts). I'll run my program again tonight to find some new ones. And hopefully in the future I can improve this thread by adding charts.

Thanks and good luck!

[mrmarket]

ok pimp...look forward to reading your candlestick voodoo.

[stojakapimp]

Nothing too exciting coming up after yesterday's close. Program spit out 16 stocks at me, but none of them look too promising.

Of the stocks I suggested yesterday, I like OYOG and ICLR the best.

OYOG is in it's third up day now, and with it's high volume trading on the engulfing day, I believe the reversal can be confirmed.

ICLR is up over 4% as of now, so another possible long white candle which could also be a confirmation. As I've said before, I'm fairly new to this, so I don't have a good feel as to how long a candle should be for confirmation, and I try to set my threshold at around 5%, so not sure how this one would play out. Also, ICLR appears to have just bounced off of it's 100 DMA. There could possibly be resistance at the slope from the two previous high peaks, which if it breaks through could also confirm a reversal.

[stojakapimp]

Still trying to refine my candlestick programs, as well as keep track of how old picks are doing, but in the meantime, here's a list of stocks that look good after the end of today, sorted by the their candlestick pattern:

Three White Soldiers
MED
TGA
JCS

Three Outside Up
PATR
CUZ
PDRT
TDG
EPR
YSI

[stojakapimp]

Here's an updated list of candlestick scenarios after Friday's trading.

Kicking Bull Scenario
PZZI
HNZ
GSH

- Even though it isn't a true Kicking Bull (the black day isn't really a Marubuzo), I like HNZ. It had a big gain on Friday, and it's +DMI is greater than the -DMI, while the ADX is greater than 25.

Morning Star
CPRX
RNR
SAVB

- I think I like RNR the best, but none of them stick out too much to me.

Rising Sun
PFL
HR
JTP
HCP

- They all look pretty good to me. Not sure how to decide which one is the best.

Three Outside Up
UAHC
SKK
BIOF

- I like UAHC and SKK the best. Probably SKK more so.

Three White Soldiers
WSH
CPCI
ALLI

- I like WSH the best

[skiracer]

Stoj,
I was looking at your name and it dawned on me the "aka" in the middle of your name could stand for "also known as" which would make the name translate to, "Stoj, also known as, Pimp. it would be a wild coincidence but it could be true. is that what it means?

[mrmarket]

Stoj,
I was looking at your name and it dawned on me the "aka" in the middle of your name could stand for "also known as" which would make the name translate to, "Stoj, also known as, Pimp. it would be a wild coincidence but it could be true. is that what it means?

Ski....whatever the name..the guy is on a roll! His thread is getting more hits than Doug's!!!

[skiracer]

Ski....whatever the name..the guy is on a roll! His thread is getting more hits than Doug's!!!

that's like throwing down the gauntlet to Doug. Stoj vs. Doug in some kind of contest. this week in the potw.

[stojakapimp]

Stoj,
I was looking at your name and it dawned on me the "aka" in the middle of your name could stand for "also known as" which would make the name translate to, "Stoj, also known as, Pimp. it would be a wild coincidence but it could be true. is that what it means?

Whoa, I never even realized that. I wish I could say that I can take credit for that, but it's just a coincidence.

I came up with the name because I'm a huge Sacramento King's fan, and a big fan of Peja Stojakovic. So I created the nickname stojakapimp for him and began using it in certain forums.

And so ends the tale of my name.

[stojakapimp]

I modified my programs a little bit and made them more stricter, so I'm not getting as many returns now. But alas, I'm still getting some, so here they are:

Abandoned Baby
NNRG - This is a penny stock, which I usually don't even pay attention to, but it's the only abandoned baby return, so I thought I'd list it anyways.

Kicking Bull
DKQ - I like this one the best out of all the others
KVT - Last trading day was only slightly up, so probably not too exciting
NVGN - Another small cap stock
RYE - Not exactly a marubozu, but it's close

Morning Star
AVSR - I like this one the best out of all the others.
CCTC - 3rd day is a white day, but closes below yesterday's open. Not sure what that means.
MOBT

Rising Sun
APOL - Also could be bouncing off the 200 day SMA
MBI - Not the longest candles, but still counted in my program.
BNSO

[skiracer]

I modified my programs a little bit and made them more stricter, so I'm not getting as many returns now. But alas, I'm still getting some, so here they are:

Abandoned Baby
NNRG - This is a penny stock, which I usually don't even pay attention to, but it's the only abandoned baby return, so I thought I'd list it anyways.

Kicking Bull
DKQ - I like this one the best out of all the others
KVT - Last trading day was only slightly up, so probably not too exciting
NVGN - Another small cap stock
RYE - Not exactly a marubozu, but it's close

Morning Star
AVSR - I like this one the best out of all the others.
CCTC - 3rd day is a white day, but closes below yesterday's open. Not sure what that means.
MOBT

Rising Sun
APOL - Also could be bouncing off the 200 day SMA
MBI - Not the longest candles, but still counted in my program.
BNSO

it might be a worthwhile thought to give some definition of what each candlestick pattern you mention looks like and what signal they give or represent. also why you like the stock. another thought would be considering market direction regarding your choices. throwing up long setups in a downtrending market environment or visa versa doens't make much sense. sometimes they will work out but a high percentage of stocks a high percentage of times, regardless of the candlestick pattern or the chart, will follow the markets direction. just a thought for adding a bit more substance to your posts.

[stojakapimp]

Well, I've made my stock picking program a little bit more complex, and now it's not spitting out too many stocks at me. I guess that's a good thing since those stocks that are returned have passed the rigorous test, but there's just not as much to look at now. Anyways, without further ado, here's the latest:

Kicking Bull - This occurs when there is a black marubozu day followed by a marubozu day (a marubozu is when there are hardly any shadows on the candle). For this, the previous trend is not as important. Most of these stocks are funds, which I have no idea if that's good or bad.

FNX - The +DI line just crossed the -DI a few days ago, but the ADX is low so no trend established yet. MACD is also showing bullish movement.

DPC - Similar setup as FNX

JPP - The +DI line just crossed the -DI line, yet it remains to be seen if this will be maintained. The MACD is showing bullish. Also, it's trading between it's +1 std and +2 std bollinger bands. If it doesn't bounce off and reverse, then it could stay between those bands and continue up.

PRFM - Similar to JPP, except the MACD signal line is above 0, confirming the previous upward trend.

RPG - +DI line just moved above -DI line, and ADX is above 20, indicating that an upward trend is confirmed. The MACD is also showing bullish, and the signal line is just about to go above 0, which would confirm this. Lastly, you could make the case that this is also a morning star pattern, in which yesterday gapped downward from 3 days ago, follows by today's white candle.

UVG

I'm not a huge fan of any of these, but if I had to pick one I guess I'd pick RPG.

Morning Star - A morning star pattern is found after a downtrend, where the 1st day is a long black day, followed by a small black day that gaps downward, then followed by a white day.

LNET - Had quite a fall in the past few days, but it showed somewhat of a morning star. The 2nd day wasn't the smallest black day, but you could say it qualifies. Everything is indicating that it's in a downtrend, so it could be risky. The only bright spot I could see is that it's at the bottom of it's bollinger bands, which just went from narrow to wide. If it bounces off the bottom of the bollinger band, then it might have some good room to bounce up to.

RUTH - Been in a long downtrend for a while now. Not a bad morning star pattern though. It bounced off it's 50 day MA almost 2 weeks ago, so we'll see if it bounces back and can break through. Plus they made really good food, so they got that going for them.

[stojakapimp]

Here's the latest. I think I'm just gonna post descriptions of each candelstick pattern in the first post, so that I don't need to continually give descriptions. So here they are for now, and I'll edit this post tomorrow.

Morning Star
DEEP
CTXS
IDSY
ESI
TSCM
TSRA

I like ESI the best, as it's been in a downtrend for a little while, and now could be reversing. Yesterday gapped down from 2 days ago, plus it resembles a hammer, which in itself is a bullish reversal pattern. Today was up almost 10% on high volume compared to the 50 DMA.

IDSY is also good, but the previous candles weren't the longest.

Rising SUN
FMR
MIPI
CROX

Not too thrilled about any of these, but if I had a gun to my head and had to pick one, it'd be FMR.

Three Outside Up
DPZ
SYNM
XRM

I think I like DPZ the best. It looks to have just broke through resistance at its 100 DMA.

Three White Soldiers
AFFX
AMG
AMSC
BLK
ANST
EHTH
EWH
MGRC
PSEM
SINT
TRAD
USTR
XL

Out of all these, I like AFFX, AMSC, ANST, EHTH, and MGRC. Out of all of them, I like EHTH the best. It had a bullish engulfing day on the 25th, after which it's been up up up forming the Three White Soldier pattern, which is also quite strong since each day closes near its high. It is sitting right at its 200 DMA, which could be cause for concern, but this hasn't proven to be support or resistance in the past.

[stojakapimp]

Here's the latest:

Kicking Bull
IW
RBNF
MSHL

Really don't like any of these. I would say maybe RBNF looks the best, but it had such low volume. I'm not a big fan of the kicking bull so far.

Morning Star
CRAI
ENS
STNR

I like CRAI the best. Yesterday was a doji, and today was up a little. Just seems to fit the definition of the pattern more than the others.

Rising Sun
ARGN
UIL

I think I like UIL a little more. It didn't have a huge up day today, but it's been in more of a downtrend than ARGN.

Three Outside Up
GLUU
SPIR

Not a huge fan of either, but I'd probably go with SPIR

Three White Soldiers
BLDR
ODSY
PRTL
REDF
ROG

I like ODSY and REDF the best. ODSY is about to reach resistance at its 50 DMA though, so keep an eye out for that one.

[Karel]

Hi stojakapimp,

do you check on what your picks do? And how do check? You could f.i. paper trade the picks you like, to give an idea how you are doing.

Regards,

Karel