Trend Continuation Candles

[Ireland]

here is a simple example of vol bars

http://www.ensignsoftware.com/images/49-3.gif

tradestation calls them share bars

in the example 1000 traded contracts produces a bar and therefore has nothing to do with time. The increments on the time axis will vary according to market activity unlike time based charts

 

[BSAM]

Quote from Charlie Dow:

Read the previous question I asked Mark. If my assumption is wrong, please clarify.

I'm not even sure what your assumption is. It seems you're trying to imply that there is no validity to the use of candlestick charting. If so, rest assured, your assumption / analysis is incorrect.

 

[Charlie Dow]

Quote from BSAM:

I'm not even sure what your assumption is. It seems you're trying to imply that there is no validity to the use of candlestick charting. If so, rest assured, your assumption / analysis is incorrect.

That is no where close to what I was saying.
Read my question, I was quite clear. If was based on an error somewhere please clarify it for me.

 

[NihabaAshi]

Ok...someone please correct me if I'm wrong.

Via this chart example of Constant Volume Bars...

http://www.ensignsoftware.com/images/49-3.gif

This is not candlestick patterns.

Aren't we talking about one type of candlestick chart based upon time versus another type of candlestick chart based upon non time?

My point...the charts that's been posted to me I've seen many times before and do not consider them to be candlestick charts of any kind.

Maybe that's where I'm getting confused by these types of questions.

It just seems like these charts are based upon a different type of bar chart analysis and has nothing to do with Japanese Candlestick patterns.

To Charlie Dow, I have two important questions:

* Do your charts that are non time base have recognizable candlestick patterns or are they similar to bar type charts???

* What are your favorite candlestick patterns eventhough you can't talk about the proprietary nature of your chart increments???

Answering those two questions will clear up a lot of things for me...

Thanks.

Mark

 

[BSAM]

Quote from Charlie Dow:

That is no where close to what I was saying.
Read my question, I was quite clear. If was based on an error somewhere please clarify it for me.

Well, er, uh.....We can both conclude that your post was more clear to you than to me.

Do you think there is validity to Japanese Candlestick Charting?

A. Yes

B. No

 

[Charlie Dow]

Quote from BSAM:

Well, er, uh.....We can both conclude that your post was more clear to you than to me.

Do you think there is validity to Japanese Candlestick Charting?

A. Yes

B. No

Yes, as long as they are applied to a constant & non-varying chart increment environment and then read by someone who "KNOWS" candlesticks. If you have to grab a book to interpret the stick the trade has already passed you by.

 

[JangoFolly]

Mark,

I'm glad this topic came up because there is a volume candlestick question I've been meaning to ask you. I use time candle charts primarily for longer-term trading decisions and to define support and resistance areas that many other traders might also reference as key areas. I use volume candle charts for shorter-term trading decisions and to highlight momentum. Also, I find moving averages, bollinger bands, and below the chart indicators are more reliable from volume-based periods.

What are your thoughts on the significance and interpretation of engulfing pattern or doji reversals on time charts versus volume charts? I can see ups and downs to the volume-based charts. On the one hand if price makes a relatively large move in one period that might be significant. On the other hand, a really strong move (i.e., high volume) on a volume chart will print successive candles each with a smaller range.

I've attached a volume chart example from today. There was a bearish engulfing pattern off the high of the day (white horizontal line at 1.2277) that was a nice harbinger of a 20-point move down from the subsequent candle's high. Trading this pattern would have gotten one in the trade a little sooner than if trading off a 15-min chart.

Thank you. I really appreciate the thoughtful and thorough explanations you provide.


Regards,

William

 

[duard]

Quote from Charlie Dow:



I can't speak for anyone else but I don't want to post a Constant Volume Bar Chart because of the proprietary increments I use. You have access to Esignal or Tradestation you can research them on your own.

Not to be disrespectful but why did you jump on this acting like you're gonna add to the understanding of "less knowledgable traders" then refuse to contribute based on proprietary rights concerns. Give me afriggin' break. How much are your seminars?

 

[BSAM]

Quote from duard:

Not to be disrespectful but why did you jump on this acting like you're gonna add to the understanding of "less knowledgable traders" then refuse to contribute based on proprietary rights concerns. Give me afriggin' break. How much are your seminars?

LMAO

 

[Charlie Dow]

Quote from duard:

Not to be disrespectful . . .

You are, especially when the only purpose of the question was to ensure a new trader didn't start heading in the wrong direction.