Creating this thread inspired by TA-discourses in this thread from this post onwards:
Instead of trying to summarize (dumb down) a creative Q&A-session, it is best to try to follow the posts and replies in that thread first, preferably try to deduct and analyze for oneself in order to confirm and learn/refer to some of the concepts presented.
@Sprout : My hope is we could continue where we left off here, and not be bothered or bothering people who are not open to different ideas about TA.
In my own journey, although I've been exposed to alot of TA-concepts, but never really got to use it much myself. It seems everyone has their own ideas about TA, and most ideas are utterly confused, so important to gain clarity, and remain humble despite success or failures.
A problem that has haunted me with trading, is how to establish the "right" context. Often we focus on too short timeframes, and get blasted by higher timeframes. So I'm wondering, what if you start at The "highest timeframe", and analyze down top-bottom? How to make sense of it. Here's an example, and on EOQ bars seems to be without SYM:
I've made a few annotations, the ones I think should be correct according to previous discourse. Guessing direction seems easier on higher timeframes, although of course the risk needs to be lowered, and maybe there's more information to be gleamed from this chart?
Does this make sense, or is there more information on lower timeframes (TF), and we get more information from there? Then this TF could be just to establish dominant direction (and we can find counter-movements and better entries on lower TFs?)
I do like the way trendlines may signal breakouts, and may be adjusted by pt3s and pt2s as well, and am interested in examples how to read volume.
Is it good to start with a big picture like this (this is all the bars for this particular stock, which is Danish).
CC: @dratsum and others that might be interested in this topic, and hopefully more people can chime in and gain some benefit, though I will suggest replies be within the framework discussed here and in the other thread.
This is all meant to be education material, and in no way suggestions for trades or investments.
Thank you for starting this thread.
If we go back to the 5x5 grid that has the real body colored. Extend the coloring so that the high and low tails are colored as well. The doji's are different. They remain colored how they are.
The bars can be sorted into three piles. The piles are the number of legs that are within a bar. How many of these bar cases are in each pile?
A leg is defined as a movement in price from moment in time A to moment in time B, both occurring within a single bar.
The doji begins to come into view. Interesting enough, regardless of the organizing logic one uses to construct it, the doji's appear in a certain zone. If we go through a price chart and use a pencil to keep track of which of these prices show up on the grid and where, we begin to discern movements across this grid.
This next piece can be observed only by a live chart. As a bar builds notice the doji. Where price came from to get to it, and where price went after it's appearance on a single bar.
This next drill supports the doji distinction. Take a PV bar chart. The annotation exercise is to draw a line from the H of the first bar to the L of the next bar if long. If short then draw a line from the L of the first bar to the H of the next bar. The resulting chart should look like a zigzag with no gaps between bars.
We are moving to ID'ing turns with the help of volume. The above drills are supportive to view the distinction.