Bar Charts, Candlestick Charts, Other, or Tape Reading?

Discussion in 'Technical Analysis' started by JMowery1987, Apr 20, 2006.

Bar Chart or Candlestick Chart or Other or The Tape?

  1. Bar Chart - Old Skool

    5 vote(s)
    17.2%
  2. Candlestick Chart - New Skool

    18 vote(s)
    62.1%
  3. Other - Hardknock Life 4 You

    1 vote(s)
    3.4%
  4. None/Tape Reader - Charts are for suckers! I don't need 'em!

    5 vote(s)
    17.2%
  1. Which do you prefer and use?

    Just created this because of another thread I saw about candlesticks. I personally use barcharts.

    I say it's all the same and candlesticks are a distraction IMO.




    Interesting to find out what the majority relies on.
     
  2. You'll find a lot of people responding that they read the tape and charts.

    The only problem I have with candles is the lesser visual emphasis on the highs and lows. The eye is drawn too much to the open and close. But still, more elegant data.
     
  3. Using candlestick charts is old school in my opinion via its historical facts of use by the guy that developed it in the 18th century.

    :D

    However, I do know your reference is that as a western analysis and in that case it is not as old as bar charts.

    I do a lot of wide range body analysis and bar charts takes too long to visualize such when looking at its charts.

    Whereas candlestick charts gives the information to me much quicker in comparison to bar charts.

    The main complaints I've heard about candlestick charts (there was a prior in-depth thread about this by someone) is that they in error ignored the shadows.

    I remember finding that odd when most candlestick books discuss the key patterns are the ones with the Shadows.

    It took me awhile to realize the reason why they spent too much time concentrating on the body of the candlestick line (wrong approach) was that they were not doing any candlestick pattern analysis.

    Whereas in comparison to someone doing candlestick pattern analysis...they don't overlook the importance of the Shadows.

    Last of all, don't be confused by someone that uses candlestick charts because it doesn't imply they are looking for Japanese Candlestick patterns.

    I know a lot of traders that use candlestick charts because of its quicker visual information and they aren't doing any specific Japanese Candlestick pattern analysis.

    Thus, bar charts visually encourages traders to look at the entire range (high to low) whereas candlestick charts for those not doing specific candlestick pattern analysis will tend to concentrate too much on the body (open to close).

    Therefore, those that trade via candlestick patterns tend to use the entire range (high to low) that involves the body and shadows because they know that the most reliable patterns involves the Long Shadow Family in comparison to other candlestick family patterns.

    Mark
     
  4. That's a good point, I never looked at it that way. As I primarily day trade, I focus more on extremes, pierces, etc. than on candlestick patterns, as they seems less reliable in the short term. The only patterns I keep an eye out for are hammers, dojis, spinning tops, shooting stars on higher time frames.

    But it never occurred to me that my wishing that shadows were more emphasized was because I wasn't directing as much focus to candlestick patterns as I was on price action.
     
  5. More votes!!!

    Although it's clear who the winner is going to be.
     
  6. My vote goes to candlestick charts.
    Why? Eyecandy :p
     
  7. Next time, you may try to add some more options:
    - line
    - bar
    - candlestick
    - candlevolume
    - equivolume
    - point & figure
    - 3 line break
    - tick chart only
    - others (please specify)
    - no chart - I don't read charts!
    Note: I would like to add 2 more options - Kagi, Renko too. But it's over the limit.

    I have modified and reposted your question in the new thread:
    http://www.elitetrader.com/vb/showthread.php?s=&threadid=68637

    Come along and have a vote! :p