Discussion in 'Technical Analysis' started by benssol, Aug 30, 2009.
Anyone here from the old people uses the line chart only?
I hope you are joking
no I'm not joking!
I've never met any trader that uses only line charts. Everyone mainly uses candlesticks, but I know of a few guys that prefer bar charts.
If you seriously are considering to trade mainly off line charts you're setting yourself up for a huge disadvantage. A candlestick tells you a lot more about price action than a line does.
The only time I ever pull up a line chart is to check if the a stock or futures made a new high/low (by few ticks) before it reversed, because the tails are harder to see in tightly outlayed candlesticks.
Also, a fake print can greatly distort a line chart, whereas you can see a b.s tail on a candlestick.
this is the reason to my question
I'm using bar chart but I'm testing an idea and want to know if anyone did it before, to shorten the way ...
and you're right, the majority using bar/candles, even books never talk about line charts except livermore's
Yea candlesticks were only introduced to America after Livermore's death.
I think one of your main obstacles will be false ticks that will distort your chart. They are more easily corrected on candlesticks. If you're going to backtest anything with line charts it may be a real pain and you may need multiple data vendors.
http://www.trading-naked.com/library/candlesticks.pdf using line charts for just over 30 years so familiarity keeps me with them, but you should always ad to your education
That is the worst advice I have yet to hear. I use both bar charts and line charts. I don't use candlestick or any other bullshit. Plain vanilla, "KISST" keep it simple stupid trading.
Line bars give you a view that a bar or candle charts does not give you. Line bars can give you better support or resistance view. Why? Because line bars are based on the opening and closing of the bar and nothing else. And when you can understand that, you will see many opportunities where a bar charts or candle charts would have mislead you.
drawing lines on candle bodies can be an advantage
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