Candle Patterns on Range Charts
- Thread starter eusdaiki
- Start date
I don't use range charts anymore, I much prefer Renkos.
IMHO, I'd forget about "candle formations" and actually look at the levels being traded. Price-based bars reveal those much better than any other charting type.
Trading, for me, is about ranges, levels and momentum -- not candle formations.
The exception would be strong reversals, which are evident on all chart types -- even the price-based.
IMHO, I'd forget about "candle formations" and actually look at the levels being traded. Price-based bars reveal those much better than any other charting type.
Trading, for me, is about ranges, levels and momentum -- not candle formations.
The exception would be strong reversals, which are evident on all chart types -- even the price-based.
My thoughts on range bars is that they have some fundamental differences with time based bars...
1. every bar has close=high or close=low, which limits the number of possible bar shapes you can get. e.g. you have a smaller universe of individual bar shapes to choose from.
2. every bar is the same size (as it was pointed before) making it impossible for one bar to (for example) engulf another.
3. the fact that they don't change unless the price moves hides some of the price action that can be derived from candle formations where you see little or no movement... (e.g. the small candles on a rising three or a three line strike)
However, I believe it is possible to observe the same fundamental price action that you see on the engulfing pattern on a CR chart... with the difference that it'll include more candles in the formation...
For now i'll continue reading them "from the gut", and trying to identify a few patterns
thank you all for your replies.
1. every bar has close=high or close=low, which limits the number of possible bar shapes you can get. e.g. you have a smaller universe of individual bar shapes to choose from.
2. every bar is the same size (as it was pointed before) making it impossible for one bar to (for example) engulf another.
3. the fact that they don't change unless the price moves hides some of the price action that can be derived from candle formations where you see little or no movement... (e.g. the small candles on a rising three or a three line strike)
However, I believe it is possible to observe the same fundamental price action that you see on the engulfing pattern on a CR chart... with the difference that it'll include more candles in the formation...
For now i'll continue reading them "from the gut", and trying to identify a few patterns
thank you all for your replies.
Oh boy, here goes. This is the formula for Engulfing. You guys are reading the wicks and that is a wicked mistake to make...
The formula is relatively simple;
(O1>C1) and (O O1). Defined as the open of yesterday is greater than the close of yesterday. And the open today is less than the close of yesterday, And the close of today is greater than the open of yesterday.
The formula is relatively simple;
(O1>C1) and (O O1). Defined as the open of yesterday is greater than the close of yesterday. And the open today is less than the close of yesterday, And the close of today is greater than the open of yesterday.
Thank you for the response, I agree, my range bar knowledge is undeveloped.
But actually I had a question -- what are the alternating red - blue bars? They look interesting. But if they're some kind of secret, I'll respect that and withdraw my question.
thanks
I tried something new today.
Set my range bars to 0.01 (1 tick on stock symbols)
I like what I saw on the chart. it tells you all the price action... no moves are lost inside a candle...
I'll try it for a few days to see what comes out of it on regards to reading the technical setups...
Set my range bars to 0.01 (1 tick on stock symbols)
I like what I saw on the chart. it tells you all the price action... no moves are lost inside a candle...
I'll try it for a few days to see what comes out of it on regards to reading the technical setups...
