Trend Continuation Candles
- Thread starter dunitlongpole
- Start date
I know the term "proprietary" has no reference point to you but that is understandable.
I've posted a cleaned up interday chart for the EURO FX to show the example of the Volume Bars for today. Disregard the labels because they won't make any sense to you anyway.
Then why can't you answer the question I asked Mark? If it's my opinion and it is wrong then show me where the error of the question was instead throwing unsubstantiated barbs.
Amazing . . .
Ridicule when a chart isn't posted
Ridicule when a chart is posted
A true mark of a poor human being.
I'm not selling anything nor digging at others strategies. I simple asked a question. Why does that threathen you so much?
Good thing people can read isn't it!
Candle sticks are supposed to be read in a sequence, kind of like reading Egyptian hieroglyphics or even the english language for that matter. Letters taken alone do not convey any meaning, example the letters C N E by themselves don't convey any meaning, but when taken in the context of other letters A D and L, we can create the word CANDLE and now that makes sense. Similarly for example when we take a hammer candle.....we have to put it in context of the other candles before it and after it. If we have a Hammer with a large tail when the market is oversold, well you pretty much darn well know there is some demand there that resulted in the long tail. Then we look at the prior candles, if they are narrow range candles we can make an assumption that the market is at an equilibrium with probably a final selloff attempt today that brought in bottom buyers. The next step would be to wait for the next days bar and see if it prints a close above the Hammer. Therefore looking at a hammer or a doji by itself is meaningless since it's like looking at only the letter C in the word CANDLE, you have to look at it in context of a collection of candles and also in context of where in the trend the candle formed. NihabaAshi (Mark) has an extensive series of charts on this topic so there is no point in my posting any more. Simply put, just because you can't read Egyptian hieroglyphics doesn't mean it's nonsense.
On the point of volume charts, I use volume charts on my trading systems where I have to overlay indicators on the chart. Volume charts are great if you are not interested in the time factor and want to analyze only demand and supply because where in a 5 minute chart you'll get one bar print, for a volume chart you'll get maybe 15 bars printed in that 5 minute timeframe when there is heavy contract activity. Ofcourse this depends on the volume settings and the market itself. I don't find the candlesticks on volume charts to be as useful as time based charts, therefore I use 15 minute and 60 minute time charts with candlesticks that I use to confirm the signals off my volume chart settings. Both time and volume charts are very useful if used in the correct context.
On the point of volume charts, I use volume charts on my trading systems where I have to overlay indicators on the chart. Volume charts are great if you are not interested in the time factor and want to analyze only demand and supply because where in a 5 minute chart you'll get one bar print, for a volume chart you'll get maybe 15 bars printed in that 5 minute timeframe when there is heavy contract activity. Ofcourse this depends on the volume settings and the market itself. I don't find the candlesticks on volume charts to be as useful as time based charts, therefore I use 15 minute and 60 minute time charts with candlesticks that I use to confirm the signals off my volume chart settings. Both time and volume charts are very useful if used in the correct context.
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This has been a helpful discussion & back to the original question;
you certainly will have more data errors with smaller time frame charts.
Not hard to catch an error on 60 minute candlecharts or daily candle charts. Sure it can slip by, less likely if you record/ trade, a focused group.
Certainly not against a market making/specialist time frame;
I am for them, even if they dont use charts much.
Facts are facts, smaller[requiring more] candlecharts have more errors.
Not even saying that's big problem for an experienced trader.