Charts Patterns are not correct
- Thread starter ligerny
- Start date
RCG has agreed to your debate and I sent you an email right after this post agreeing to sit done with you as well. I've waited a reasonable amount of time (4 months) but to date, you haven't responded to either of us.
I'll now post a response here as well, as long as you stick to your promise of focusing on content (as stated in blue above). I'm willing to sit down with you and go over exactly what I do and how it works.
Simple solution to candlestick woes - Switch to OHLC 
Seriously speaking, yes these feed issues are a pain. You just have to accept that you had no signal and move onto the next trade.
Best you can do is make sure you have a good reliable feed, adjust your chart's session settings to what is optimal for the instrument and then move on.
Seriously speaking, yes these feed issues are a pain. You just have to accept that you had no signal and move onto the next trade.
Best you can do is make sure you have a good reliable feed, adjust your chart's session settings to what is optimal for the instrument and then move on.
Quote from wrbtrader:
Yeah...this is a common problem involving Japanese Candlestick patterns. A few ticks different in a particular interval can easily change the entire pattern when comparing one data vendor to another data vendor.
You can't fix it but you can use two different data vendors to cross check each other. Thus, you'll only take trades when both data providers have the same candlestick pattern or very similar. Another solution is verify the pattern in two highly correlated trading instruments. For example, if you get a bullish white hammer pattern in Eurex DAX futures you want to see the same in Eurex DJStoxx futures.
The last option is expensive...that is you use only the higher end data vendors (bloomberg, CQG et cetera) because their data is supposedly the most accurate.
Why the Difference?
All data vendors aren't getting their data from the same source. Simply, the more middle man that exist...more chances of lost price ticks by the time it reaches you. Throw in your own lost data packets and you and your buddy next to you will easily see different patterns for the same trading instrument if using different data vendors, different ISPs and different software.
With that said, if you understand the price action prior to the appearance of your candlestick pattern signals...it won't matter if your data vendor is accurate or not when you see a white hammer line for one vendor and a doji line for another data vendor for the exact same interval...another reason why many traders have different back test results for candlestick patterns.
Yet, data vendors are a lot better today than they were 15 years ago because in the old days they would update or fix there bad quotes after the close. Thus, for example, that bearish engulfing pattern you saw at 12noon that failed and you lost money when prices went higher...
After the close there would be no bearish engulfing pattern but it's been changed to consecutive doji lines.
Mark
On more reason to trade intraday, off of a daily chart.
Still stands.....I will go on record for you or any other journalist.
Interesting conversation.
I would like to mention two things related to the subject.
Success with candlestick charts can be enhanced with examining the proper technical context the formation is happening in, so reading a particular candle is just a fraction of what one considers.
If someone had a good grasp of market dynamic they would overcome an occasional wrong signal, besides _ HOW ABOUT THE INSTANCES WHEN THE WRONG CANDLE SAVED THEM MONEY?
While I have never noticed candles to be appearing wrong (blissful ignorance), a number of years ago I was migrating between two or three platforms and to my surprise some of the common indicators did not plot the same way. I never thought of checking data integrity.
In addition some of the platforms had preset features for some indicators that I could not access, whatever they had was not variable. For example one used last for a particular data point and another averaged HLC. I am almost certain this still exists.
I contacted one vendor who had one indicator completely wrong and I flat out told him they did not know what they were doing.
Quick way to make friends...
Regards,
bc
I would like to mention two things related to the subject.
Success with candlestick charts can be enhanced with examining the proper technical context the formation is happening in, so reading a particular candle is just a fraction of what one considers.
If someone had a good grasp of market dynamic they would overcome an occasional wrong signal, besides _ HOW ABOUT THE INSTANCES WHEN THE WRONG CANDLE SAVED THEM MONEY?
While I have never noticed candles to be appearing wrong (blissful ignorance), a number of years ago I was migrating between two or three platforms and to my surprise some of the common indicators did not plot the same way. I never thought of checking data integrity.
In addition some of the platforms had preset features for some indicators that I could not access, whatever they had was not variable. For example one used last for a particular data point and another averaged HLC. I am almost certain this still exists.
I contacted one vendor who had one indicator completely wrong and I flat out told him they did not know what they were doing.
Quick way to make friends...
Regards,
bc
Quote from 222bc:
Interesting conversation.
I would like to mention two things related to the subject.
Success with candlestick charts can be enhanced with examining the proper technical context the formation is happening in, so reading a particular candle is just a fraction of what one considers.
If someone had a good grasp of market dynamic they would overcome an occasional wrong signal, besides _ HOW ABOUT THE INSTANCES WHEN THE WRONG CANDLE SAVED THEM MONEY?
While I have never noticed candles to be appearing wrong (blissful ignorance), a number of years ago I was migrating between two or three platforms and to my surprise some of the common indicators did not plot the same way. I never thought of checking data integrity.
In addition some of the platforms had preset features for some indicators that I could not access, whatever they had was not variable. For example one used last for a particular data point and another averaged HLC. I am almost certain this still exists.
I contacted one vendor who had one indicator completely wrong and I flat out told him they did not know what they were doing.
Quick way to make friends...
Regards,
bc
Create 10 identical time or tick based charts, on 10 different charting programs, looking back the exact same length of time, and use the exact same candlestick settings on each and feed them with 10 different data feeds and the candlesticks on each one will be different.
Nuff said.
it used to bother me that when i reload my tick charts in trade station i get a different picture to the point that my setup often disappeared.
and could not even be found if i upped and lowered to tick per bar slightly.
right now it has become PART of how i explain to my self how it is possible that i am seeing something others smarter then me have missed.
i like a setup with variables so unstable they are bound to disappear with a chart reload and tick recalculation cause it is in strange places like that where the nuggets maybe be found
and could not even be found if i upped and lowered to tick per bar slightly.
right now it has become PART of how i explain to my self how it is possible that i am seeing something others smarter then me have missed.
i like a setup with variables so unstable they are bound to disappear with a chart reload and tick recalculation cause it is in strange places like that where the nuggets maybe be found