The Perpetuated Fraud of Candle Charting

Discussion in 'Technical Analysis' started by Fleming Snopes, Dec 7, 2009.


  1. Well, I guess you be screwed then. Ya data is bad if its retail level. no doubt about it.
     
    #31     Dec 8, 2009
  2. How is this different from your opposite viewpoint? You are basically saying the same thing:

    "Of course it doesn't work. Evidence? Well, I believe it to be not true, so it musn't. You are wrong if you do not agree with me..."
     
    #32     Dec 8, 2009
  3. 12+ yrs full time under my belt says otherwise :p


    By the way, I watch the open and close of EVERY bar intraday that I use as a reference and match it to my DOM to make sure that its on point as well.
     
    #33     Dec 8, 2009
  4. This statement will win you a trading argument every single time LOL
     
    #34     Dec 8, 2009
  5. It's just retarded to hear people say this or that is impossible or cant be done. If they really felt that way, why even come to ET? Why even attempt be a trader, right?

     
    #35     Dec 8, 2009


  6. Got a big inheritance, business income, lottery winnings, or wealthy spouse or simply saved a nice amount over the years of buy and hold?

    OR

    possibly you got hugely lucky in the start and pyramided so now you are just grinding it back away waiting for another lucky day<>
     
    #36     Dec 8, 2009
  7. No, I actually LEARNED how to trade. Learned how to read price and volume patterns and discern crowd behavior to the point I could quantify it mathematically. Now I just apply it everyday, watching bar by bar and am able to make a very good living.

    It's almost NEVER about luck, but the application of a proven approach with discipline and consistency and executing it to a tee every time. That's what it takes, it's a very very competitive game.

     
    #37     Dec 8, 2009
  8. Damn, Rasky! You are serious! An excellent error check! I am glad my codes aren't that paranoid. They just tell me what to do and I do it. I have neither the patience nor the attention span to monitor the way you do. With auditory alerts I could trade blind or drunk or both if I had to, which is increasingly a good thing on both counts. I stay glued pretty much to price velocity at it develops at a one second rate, almost to the exclusion of everything else, and it often happens that I am caught totally off guard when an S/R proximity alert or a price or volume blowoff detector goes off. Would be as good as Vegas if there were short skirts prancing around.
     
    #38     Dec 8, 2009
  9. mokwit

    mokwit

    The biggest problem with candlesticks is that it takes longer to unlearn them once you realise they are meaningless than it did to learn them in the first place.

    Try counting all the Doji's etc on a stock that has had a long uptrend.

    I use them for supply/demand visuals, but that's about it.
     
    #39     Dec 8, 2009
  10. First Off...

    I'll be the first one to say I don't know shit about trading, I'm not saying I'm right nor am I attacking anyone else on this thread

    Preface aside...

    IMHO I believe this is a silly argument. To say that candlestick's don't "work" or are "worthless" is an illogical statement. A candlestick chart is simply a visual represntation of information. Candle's display the exact same information as a bar chart & the only difference between a candle chart and a line chart is that candles show 4 pieces of data (H,L,O,C) opposed to only 1 (close) shown in the line. A candle is a set of raw data, nothing more, nothing less & I would argue the more data the better. If you do not find candles helpfull thats fine, but to say that a set of raw data doesn't "work" or is "worthless" I believe is an illogical statement.

    By the same definition of a candle being a set of data, I would also argue that the timeframe used is also irrelovant. To say that candle's don't work or are useless intra-day is again saying that a set of data doesn't work or is useless. In my view a candle, what ever the time frame, is a snapshot summary of supply & demand as well as pyschology, it simply tells a story. You cannot say that it doesn't matter because it is what factually happened & what happened always matters(assuming the data is right).

    With that said, if a candle is nothing more than information, than that information is open to interpretation & context. Do I think that pattern "X" should be interpreted the exact same way on a 15 minute chart as a monthly chart? Of course not, there are many other factors that are much different in the two time frames that would affect your interpetation of the pattern. Do I think that the longer timeframe you have, the smoother the trend & more "weight" a candle has? Yes of course, obviosly in shorter time frames there is always going to be more noise & you cannot interpret a "gravestone doji" in a 1 minute the same as one in a weekly or monthly. But depending on your trading style and plan, the characteristics and context of the timeframe you are trading should be recognized & the candles should be interpreted in an appropriate fashion...


    That's my 2 cents guys whatcha think?
     
    #40     Dec 8, 2009