I hope I spell this correctly...try Heikin-Ashi Candlesticks...
I can't post the link, but google for Heikin-Ashi candlesticks and the fourth link down titled, "Using the Heikin-Ashi Technique", will give you some information.
Michael B.
I can't post the link, but google for Heikin-Ashi candlesticks and the fourth link down titled, "Using the Heikin-Ashi Technique", will give you some information.
Michael B.
Quote from bvam1:
To clarify: (a better hypothetical example, I hope)
On a particular day, say 12/1/9000, your long-term trend outlook points upward indicating an up trend. At 10:15 am, the price is making higher high for the day, the question is do you buy here? Later in the same day at 2:00 pm, the price is making lower low for the day, do you sell here or buy? How do you know if the short-term trend is weak or strong to better time your entry? Furthermore, how do you know if this is or is not the point of trend reversal?
My idea is that you can gauge the quality of a trend by what the price is doing. Using the example above, let's say at 10:15 am, although the price is making higher high, the price is increasing at a decreasing rate. And at 2:00 pm, the price is decreasing at a decreasing rate. Using this new info., what would you likely do? I now know that at 10:15 am, the short-term up trend is slowing down, indicating a possible short-term reversal. If I buy at this point, it is likely that my position will show a loss, at least for a short-term period. But why do I want to even absorb the loss of a short-term pullback. If I time my long entry at 2:00 pm, when the short-term trend is weakening, it is likely that I will make short-term profit rather than a loss.