Thanks ProfLogic
Non-regular bars ?
- Thread starter Swarm
- Start date
Thanks for all of the replies. I think the main message was don't look too short term. I had a play with Renko and Heiken Ashi bars which seem to offer a much clearer view of trends than traditional candles, but I don't like the idea of parameters in renko which could easily be wrong and provide a misleading view.
I didn't really understand the comments about prime numbers, could somebody explain simply what you are doing with the number 7 ?
Thinking about all of this a little deeper, it seems key to understand why technical analysis works in the first place, e.g. :-
1. It works by giving you a clear view of market direction which you can use. In this case finding alternative 'views' that give you an edge might be useful.
2. It works because large market players are looking at the same charts as you and making similar decision so you are riding on the back of their volume. In which case you want as standard a view as possible to get the same view (opposite to 1.)
3. It has very little merit, and any profitability is more likely due to well timed exits rather than a predictive entry.
I didn't really understand the comments about prime numbers, could somebody explain simply what you are doing with the number 7 ?
Thinking about all of this a little deeper, it seems key to understand why technical analysis works in the first place, e.g. :-
1. It works by giving you a clear view of market direction which you can use. In this case finding alternative 'views' that give you an edge might be useful.
2. It works because large market players are looking at the same charts as you and making similar decision so you are riding on the back of their volume. In which case you want as standard a view as possible to get the same view (opposite to 1.)
3. It has very little merit, and any profitability is more likely due to well timed exits rather than a predictive entry.
4. It works because "Smart Money" (big traders) leaves "tracks in the snow"...it is impossible to conceal movements with volume, which are what moves price... they must show up on a chart one way or another.
Once you can see the tracks, you can figure out a way to take part in what is happening.
