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Intraday vs Daily bars
- Thread starter karsat
- Start date
How can people believe there is more information in the set of prices on a given interval represented as a bar than in the set of prices itself ? The same who believe there is more information in the average of a sample than in the sample itself ?
The ergodic hypothesis! I myself use a one tick chart at times.
Quote from science_trader:
How can people believe there is more information in the set of prices on a given interval represented as a bar than in the set of prices itself ? The same who believe there is more information in the average of a sample than in the sample itself ?
There is not more information in the set of prices on a given interval represented as a bar than in the set of prices itself. But the way it is represented has a big impact on the way the information is absorbed, analyzed and understood by the brain.
If i give you 25000 lines with data about a cash planning it will never give you the same insight as if i would group all the data in revenues, expenses, taxes.... and grouped them per week or per month.
You will never see a structure in the 25000 lines, in the rapport you will see clearly a structure although it is the same data. Only the presentation is different.
So there is an essential difference between daily and intraday data.
Especially in multiple timeframing it is clear that there is a difference.
Quote from karsat:
Yeah I know this is kind of tough question, but I think lot of profitable
traders do have good idea on this
It's dependent upon the strategy and its trade management (trading plan) being used.
Some traders may be using an inadequate trading plan that has poor results on both (intraday and daily).
Other traders may be using a trading plan that has poor results on daily but profitable results on intraday or vice versa.
NihabaAshi