Blended Candles

C

chart pig

Anyone use 'blended candles' with success?

I'm looking at two sector ETF charts specifically (i will try to post), XLF daily and XLI daily. They are basically the same pattern over the last four trading sessions.

If the last three daily candles are blended and compared to the first, then an obvious bearish engulfing pattern presents itself.

I'm looking to take sector positions and appreciate anyone's insight into blending candles. Thanks in advance.
 
Heikin-Ashi charts are blended and I'm a big fan. Spinning tops are decent indicators of tops and bottoms. I work mostly in futures and crypto however. I haven't looked at them closely for ETFs.
 
patrickrooney said:
Heikin-Ashi charts are blended and I'm a big fan. Spinning tops are decent indicators of tops and bottoms. I work mostly in futures and crypto however. I haven't looked at them closely for ETFs.
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Thanks. Excellent. I can definitely apply that to ETF's no problem. I have many crypto positions so I can test it out on them for research. I was/am concerned if anyone else has had success or total failure with the technique. I'm concerned that I am projecting my directional opinions by blending price action to make a reversal pattern.
 
chart pig said:
Anyone use 'blended candles' with success?

I'm looking at two sector ETF charts specifically (i will try to post), XLF daily and XLI daily. They are basically the same pattern over the last four trading sessions.

If the last three daily candles are blended and compared to the first, then an obvious bearish engulfing pattern presents itself.

I'm looking to take sector positions and appreciate anyone's insight into blending candles. Thanks in advance.
More...

I can't remember the names of the charting vendors but there's some out there that "blend intervals" for you...intraday and daily if that's what you're really talking about.

Yet, if you're talking about overlaying the price action of XLF with XLI as if "blending" one chart with another chart to produce "one overall chart". Many charting programs do the same.

In contrast, if you're trying to just view the prior 4 days as 1 day...you will need to do the same for "ALL" the intervals before the prior 4 days because trading via candlestick analysis on just 1 interval (1 day)...not good. Therefore, you need to use proper candlestick analysis to help see some of the market context for the past weeks or months of blended Japanese Candlestick intervals.

Simply, don't trade via 1 interval (blended or not blended) of Japanese Candlestick Analysis...its been backtested...poor results and its not the way that Japanese Candlestick Analysis was designed to be used.

wrbtrader
 
Here's a side-by-side of blended, Heikin-Ashi, vs. standard candle. I created this two days ago when looking at KC Wheat futures.
https://twitter.com/x/status/1034892677270188032

blended.png
 
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