understanding the causes of chart patterns

[Laissez Faire]

This "candles" format obscures useful information. I have no idea why people think its useful. Anybody know?

Could you elaborate on that?

After using candles strictly for years it's the other way around for me. If I plot a bar chart I might as well use a line chart as what I can see on a candle chart isn't as visible for me on a bar chart.

I know many seems to endorse bar charts, though, and upon that suggestion I've tried them, but I just can't seem to become comfortable using them.

 

[SunTrader]

We all have our preferences. Under certain circumstances I look at line on close. Good software nowadays allows for the quick, easy toggling back and forth but if I had to choose one it would be candles hands down.

 

[spooz]

I guess it's what you get used too. It seems to me that the only part of the bar that is useful is the high and low. Both of these are easily missed when quickly scanning a candle stick chart. Also the central part of the bar which is of no use is highlighted.

 

[Sprout]

im narrowing down my gap in knowledge slowly and one of the big bottlenecks is actually understanding what is happening in the background as patterns form

alot of gurus parrot eachother on youtube videos and dont really give any info besides the basic that doesnt help past beginer traders or advanced traders looking for a very specific tricks

so for example its captain obvious that im observing retracements during a falling knife downtrend pattern. but its meaningless to me if i dont understand what is causing it.
what are the sellers doing
what are buyers doing
what about shorts longs who is stuck who is getting out who is getting in and who is crying and cancelling their lambo this weekend etc.

i dont know what to actually search for to learn these things.
i watched so many youtube videos and still cant find answers my brain is complete fn blender now

this forum so far has been the best help btw so thanks for all yallz time (with few exceptions of people who just troll and try to derail posts for no reason)

We observe effects before understanding or attributing a cause. Posting a chart with annotations would go far in getting better feedback and insight.

 

[Bad_Badness]

You are wanting a generalized causal relationship. Even if one is offered, it is not action-able-tradable with enough reliability.

Asking for specific situations might allow you to get an idea of the forces at work, but it is not the same as predictable, generalized, action-able information.

The other thing sub optimal about this question is it is framed in a mixed context. One one hand, you have your methods of trading, ala, 1960, fill a ticket and place an order. On the other hand you have 60 years of hard driven improvement and optimization by professionals trading using algorithms. Very advanced algorithms that are often not based on heuristics, which is what most traders use to trade.

So you are sort of asking like a cave man asking how a Bic lighter works. Hard to advise the cave man when he does not understand the question enough, to setup an understandable answer for him.

Hope that helps. If not, consider this explanation: the major players who move the market, do it for reasons and in ways that you do not use, understand, or can implement, YET.

So stop trying to fit the square peg into the round hole. Start to study what they do, how they do it, and why. Then you will have a basis for better understanding.

 

[easymon1]

I guess it's what you get used too. It seems to me that the only part of the bar that is useful is the high and low. Both of these are easily missed when quickly scanning a candle stick chart. Also the central part of the bar which is of no use is highlighted.

Sounds interesting. Have you expanded on aspects of your method on ET somewhere?

 

[spooz]

No, I only talk in generalities on here.

 

[schizo]

On the chart posted for E-mini Nasdaq 100 futures, on 2/14 all day long price hit 14287 (at least a dozen times)

Mhmm, that's interesting, takes a sip of Whiskey, wondering if this
14287 level might hold some inexplicable significance.

Ever heard of "support & resistance"? What was once a major support is now a major resistance.

 

[spooz]

It's a 50% SR level from something to the left of the chart.

 

[SunTrader]

It's a 50% SR level from something to the left of the chart.

Globex overnight high basically 14298 - Lower horizontal line on 5 min chart.

Personally other than first touch I see no use for it after.

Prior breakdown bars - Middle and Upper horizontal lines drawn from provided a clue of what's to come:-