I think we have to take the professor's comments in context. This thread is about people wanting to know how to read price action. Everyone here can look at a bar chart, yet there are many people who cannot interpret the price action. No one is saying that it is impossible to read price action from a normal bar chart, it is just easier to read price action with charts that have time taken out of them as a variable.
How to Learn Price Action
- Thread starter SoCalTrader619
- Start date
I assume nothing in my comments. Please re-read my complete comment.
I said "I" can not use time based charts because of their embedded variabilty. Others use them and trade them and if they are successful, great.
I require as much consistency as I can get. I'm almost to the point of compulsive regarding chart price oscillation consistency but that is my personal comfort zone regarding a trading environment. I don't need to interpret volume and price together because CVB charts give me the luxury of viewing and reading their oscillation and movement perfectly melded together.
Regarding the value you or anyone else puts on profit, I can not comment since I do not know the situation that all here are in. Everyone is different. I can only comment on what is relevant to me.
I never said it was the Holy Grail or even the be-all-end-all of chart environments but it works for me because it's a non-variable chart environment and "I" require that. I require an environment where there is the least amount of noise and choppiness as I can get.
CVB charts are not "just another view" of price but a smooth, consistent and non-varying view. That is a benefit for some like me. Others that have never spend the detailed time to evaluate them have a hard time understanding the difference.
That doesn't make one better than an another because "better" is relative. Some like the variability of time based charts and that is fine, some like the variability of range or tick charts and that is fine, I simple perfer a non-variable chart environment.
Should price be seen independent of other variables such as volume?
Obviously it CAN be, but SHOULD it be?
I don't think so, especially on an intraday basis.
If most traders, in the long run, are losers, shouldn't one look for clues that a substantial number of traders are currently making a decision about price?
I think one should, and I have found that minute bars work best for me in gleaning this information.
JMHO.
Quote from smilingsynic:
Should price be seen independent of other variables such as volume?
Obviously it CAN be, but SHOULD it be?
I don't think so, especially on an intraday basis.
If most traders, in the long run, are losers, shouldn't one look for clues that a substantial number of traders are currently making a decision about price?
I think one should, and I have found that minute bars work best for me in gleaning this information.
JMHO.
For me, volume is necessary. But whether it's necessary or not may be irrelevant to those to whom volume is not available.
LC
I've been toying around with three line break charts for some time now. I started to trade them live like two weeks ago, still skeptical with low contracts. So far the results has been more than I expected.
About CVB I think is a good tool for a trading arsenal, unfortunately sierra charts CVB bars are kinda crooked in my opinion.
Three line break charts is an interesting concept, very old invented by the Japanese long time ago. You can do a search on that.
Actually I have them customized for 2-line break for a quicker entry.
The idea is simple : you go long/short after a full-reverse candle has closed.
I used them for entry only. I trail my stops and have a fixed target. Some people suggest to exit after a reverse candle, I tried that and got burned a couple of times real hard.
using a fixed target and a sensible trail stop (not too close to the fire but letting the trade sufficient room to breathe.) have worked out real nice.
Of course you know you will get burned from time to time, but it's the nature of the markets
Just in case I'm still testing them
About CVB I think is a good tool for a trading arsenal, unfortunately sierra charts CVB bars are kinda crooked in my opinion.
Three line break charts is an interesting concept, very old invented by the Japanese long time ago. You can do a search on that.
Actually I have them customized for 2-line break for a quicker entry.
The idea is simple : you go long/short after a full-reverse candle has closed.
I used them for entry only. I trail my stops and have a fixed target. Some people suggest to exit after a reverse candle, I tried that and got burned a couple of times real hard.
using a fixed target and a sensible trail stop (not too close to the fire but letting the trade sufficient room to breathe.) have worked out real nice.
Of course you know you will get burned from time to time, but it's the nature of the markets
Just in case I'm still testing them
I tried both I fell in love with VB charts when I got ENSIGN unfortunately they don't have some other stuff I use for my trading. I had problems big time with multicharts and my data provider.
About price it all depends. I don't like candlesticks 'cause they make me kinda jumpy especially those wicks. I prefer smooth price action. But I have to agree that many traders have a true edge reading candlesticks.
Whatever fits your bill
I personally don't care what type of charts. I mean. it's nice these new developments on charts and everything but I remember back in the day you didn't have the luxury of charts, you have to rely on OHLC and pivots, written in a piece of paper.