Position Trader Price Analysis

Looking for some input from those who take longer term positions in futures contracts based solely on price analysis.

Specifically, those of you who make use of weekly and daily bar/candle charts as part of your analysis.

What's more important to your analysis, h's/l's or closes, and why?

 

All of them, including the open in some cases. Why? I don't know. Black cat, white cat, it's good as long as it does the job.

 

I guess this thread is testimony to the # of people on this site who are daytraders.........


If you're one of the lone few who aren't, please speak up.

H's/L's or closes in your analysis of price on longer timeframe charts?

 

Now that statement might well mean something else entirely.

Daytraders use all the time frames available on a charting package.

When taking a longer term position in the market a trader is taking on larger risk for larger potential reward and this warrants even greater due diligence than taking on a shorter term trade.

 

The open, high, low, and close are all equally important to me. It would be like chopping off one of my limbs to not use one of them.

You could probably get a better answer if you stated why you are asking this question, like why are you looking to emphasize one over the others, what is your purpose?

 

You can get "shaken out" or "faked out" by the highs and lows before the close occurs.

 

This is kinda longer term analysis, some times you can see program trends that last for several days and could just hold a position if that is what you want to do.

On this chart that covers yesterday and today you can see the "long term" trade, in this case meaning overnight, and where you had nice trend areas due to the absence of fading where you could do a bunch of scalp trades in the fast downtrend and fast uptrend areas.

 

sorry it didn't take the first time

 

While I normally trade intraday, on daily charts I see the opens/closes of previous swing highs or lows acting as S/R more often than the absolute highs and lows.

My theory: more volume/transactions take place near the RTH opens and closes than during the rest of the day.
Resulting in more traders looking to exit at or near those levels (given the chance) than at the absolute high/low ticks where there are typical relatively few trades.