yeah...bars bars are skinny, like bars on a window in a bad neighborhood, or a barbell in the gym. OHLC is skinny, and so it is called a bar chart...not really a graph though. i said graph earlier. if you go to a candle factory youll understand why they call them candlestick charts, they hang candles by the wick.... there's no way im teaching something, wtf? i want to learn, oh well, cool and yeah candles give the same info, but i think i liked them at first just cuz they looked fun to watch, you might like the cleanliness of a "OHLC" chart, just my opinion. some people just look at numbers flashing... class is dismissed
My 2 cents Learning price action has to be coupled with watching the action in the DOM. You can see turns coming and market strength/continuation in the DOM. I glance at charts to see where we've been but the majority of my entry signals come from watching the DOM. It depends on your time frame. I am a short-term trader so the DOM works for me. For longer term positions charts are OK.
This a good chart, but what was it like in real time, in terms of making your decisions? Before the highs and lows were clear? Before you drew your fourth line?
thats what im truly want to know, because i decided i should do this on friday, so i havent been able to use it in real time. im in the research phase, im waiting for monday. and for the previous question, i draw as many lines as i can, while doing my research on this, all the lines needed would already be there, waiting for price to come....so, before it happens you might not know exactly where you will enter, but when price pokes its little head through an intersection, bam! you wack that mole..........here, i just did research on another day, ill attach it. i will draw my lines in real time on monday and every day after 11-17-2008 as well. does anyone trade successfully with something similar to this?
Great! That's the way to do it. I don't believe anyone who doesn't show me the real time decision they made. I have great respect for those that show the chart when they entered and explain why they entered based on what they saw right then. As I said, either here or on another thread, that's the downfall of the Anek thread. Don't get all upset, people. Remember, I already said that it is full of valuable information, none-the-less! Just that the final step is missing. Decisions made in real time off charts at that very second.
In for info about this. DOM looks like random noise to me. I don't see any patterns. The movement appears to be random. To make things even more confusing, I see price jump +/- 5-10 ticks at a time on the DOM when there were bids in between. Plus, it updates so fast! Even if there was a pattern I was supposed to look out for, by the time my eyes saw it and my brain fed the signal to my finger to click "buy," the DOM would have updated itself 10 more times during that interval of time. For that reason, I was under the impression that only automated programs running on very fast computers could take advantage of any momentary (milisecond) imbalances in DOM data. I will give you infinite +rep if you can show me how to make sense out of DOM data!!!!
How do you use the DOM? I know there are others who swear by it, but I use PA and S and R. I would love to add anything else that works and is not an indicator. BTW, I also sometimes use pure price. It takes more concentration than watching a chart, but if numbers make an impression on you, then this works too.