What's more important: The closing price of a bar or the extremes of the bar? In otherwords, is the close more important than the H and L prices? Do you focus more on the H/L prices or on the closing prices of bars when you are trading? Could you live without either the H/L or close prices and still trade? I'm struggling deciding which of the two to focus on, and was hoping that someone may shed some light as to the importance and drawbacks of each.
why do you want to limit yourself? They both have pros and cons. Use them both. Its kinda like your saying which is more important to drive a car, the gas or the break? Each has its seperate purpose, but they work together. So use both.
Several very profitable mechanical trading systems use ONLY the close when calculating their buy and sell signals. For them, the high and low are irrelevant. Several other, also very profitable, mechanical trading systems use ONLY the high and low when calculating buys and sells. For them, the close is irrelevant. And of course there are very profitable mechanical trading systems that use all three: high, low, and close. Which is more important to you? I guess it depends on what kind of a trading system you use. For fun, put the following trading systems into one of the three categories above: a. Channel Breakout b. Triple Moving Average c. Bollinger-Band Breakout d. ATR-Band Breakout (also sometimes called Keltner Channels) e. Parabolic Stop-And-Reverse