Question about candlesticks...

[robbie25]

When drawing trendlines with candlesticks, are you supposed to use the high/low, or the open/close?

Your trend/support lines can be quite different depending on what you use.

TIA

 

[murray t turtle]

Quote from robbie25:

When drawing trendlines with candlesticks, are you supposed to use the high/low, or the open/close?

Your trend/support lines can be quite different depending on what you use.

TIA

===============
R25;
Answer is yes, all the above. When recording data, mostly record Open/h/l/Close.....

And mainly the close;
my moving averages[trendlines automatic drawn] , answer again, the close...

 

[wrbtrader]

Quote from robbie25:

When drawing trendlines with candlesticks, are you supposed to use the high/low, or the open/close?

Your trend/support lines can be quite different depending on what you use.

TIA

There's no right or wrong. Select one and stick with it.

However, if you use the open/close (ignoring the shadows or wicks) and there's a lot of volume or volatility in those shadows in comparison to the price action of the body (open/close)...

You'll be ignoring the most important price action of the interval.

Mark

 

[charto911]

goes either way if you see charts at charts.ly you will see candlesticks with trendlines going from the close/open as well as the h/l of the candle.

 

[LEAPup]

Quote from wrbtrader:

There's no right or wrong. Select one and stick with it.

However, if you use the open/close (ignoring the shadows or wicks) and there's a lot of volume or volatility in those shadows in comparison to the price action of the body (open/close)...

You'll be ignoring the most important price action of the interval.

Mark

Agreed. Tails = pain

 

[Aziz]

Quote from robbie25:

When drawing trendlines with candlesticks, are you supposed to use the high/low, or the open/close?

Your trend/support lines can be quite different depending on what you use.

TIA

Actually i found that using high/low is the most effective way to follow the trend of the market, the shadow should be considered when there is a volume spike.

also note that when using "snap to price" option in MetaStock it goes to the high/low without considering the open/close prices.