Question about candlesticks...

Discussion in 'Technical Analysis' started by robbie25, May 10, 2010.

  1. robbie25

    robbie25

    When drawing trendlines with candlesticks, are you supposed to use the high/low, or the open/close?

    Your trend/support lines can be quite different depending on what you use.

    TIA
     
  2. ===============
    R25;
    Answer is yes, all the above. When recording data, mostly record Open/h/l/Close.....

    And mainly the close;
    my moving averages[trendlines automatic drawn] , answer again, the close...:cool:
     
  3. There's no right or wrong. Select one and stick with it.

    However, if you use the open/close (ignoring the shadows or wicks) and there's a lot of volume or volatility in those shadows in comparison to the price action of the body (open/close)...

    You'll be ignoring the most important price action of the interval.

    Mark
     
  4. goes either way if you see charts at charts.ly you will see candlesticks with trendlines going from the close/open as well as the h/l of the candle.
     
  5. LEAPup

    LEAPup

    Agreed. Tails = pain
     
  6. Aziz

    Aziz

    Actually i found that using high/low is the most effective way to follow the trend of the market, the shadow should be considered when there is a volume spike.

    also note that when using "snap to price" option in MetaStock it goes to the high/low without considering the open/close prices.