%% Good points; by definition, out end of day is a honest limit or could call it an enemy of profits . That explains in part why there are so few daytrading companies + even fewer for a long time. . Certain exceptions apply. Time is sure not the enemy of trend followers generally speaking LOL
Not sure we're completely on the same page. I mean I understand your post, but you did misquote me / changed the order of what I said and it does change it a little.
Candlesticks are a good example that people tend to just do the same thing over and over for no reason. Why color them for up and down bars? It has no meaning. The hysterical thing to me is using red/green has association with traffic lights but we usually color candlesticks backwards. We color them red for stop when they are down and you should be thinking about buying and green for up when you should be thinking about selling. What is even more absurd is we have tick data. If you really wanted to trade like this you could do a box plot that takes into account all the information and not just 4 data points like you are looking at stocks in the newspaper in 1975.
They're not used for no reason. They are a useful sketch of what price has been doing. Not the whole picture, but a useful summary all the same.
Was thinking the same the other day, i.e. how would offsetting the price data impact the candle stick patterns, but didn't get around to try it out. So, thanks for posting this! But I was also thinking that if enough people act upon these patterns with specific standard offset, then it becomes the reality
. Plot tracking consecutive HLs (Up trend) and LHs (Down trend) Top plot is unmarked, bottom is how I marked the possible fractals. On the 4th consecutive HL / LH plot turns black (Trend is established). On the 8th consecutive HL / LH plot turns cyan (Heads up, trend leg could be nearing climax). A new trend (however long it may be) has likely started once there are 3 consecutive HLs/LHs Is this a buy/sell signal? No, it comes 3 bars too late BUT, if you want to catch the second leg of a trend, it's a good signal that it's probably around the corner. I've been working on this to automatically nest fractals across multiple timeframes.
I ask because this bar, for example, stood out to me skewing things up a little:- HH, HC but LL too. Some use MedianPrice as a thought. I delved into it a long time ago but moved on to others ways of determining.