understanding the causes of chart patterns

Discussion in 'Technical Analysis' started by mute9003, Feb 18, 2022.

  1. Could you elaborate on that?

    After using candles strictly for years it's the other way around for me. If I plot a bar chart I might as well use a line chart as what I can see on a candle chart isn't as visible for me on a bar chart.

    I know many seems to endorse bar charts, though, and upon that suggestion I've tried them, but I just can't seem to become comfortable using them.
     
    #21     Feb 19, 2022
    nooby_mcnoob and SunTrader like this.
  2. SunTrader

    SunTrader

    We all have our preferences. Under certain circumstances I look at line on close. Good software nowadays allows for the quick, easy toggling back and forth but if I had to choose one it would be candles hands down.
     
    #22     Feb 19, 2022
  3. spooz

    spooz

    I guess it's what you get used too. It seems to me that the only part of the bar that is useful is the high and low. Both of these are easily missed when quickly scanning a candle stick chart. Also the central part of the bar which is of no use is highlighted.
     
    #23     Feb 19, 2022
  4. Sprout

    Sprout

    We observe effects before understanding or attributing a cause. Posting a chart with annotations would go far in getting better feedback and insight.
     
    #24     Feb 19, 2022
  5. Bad_Badness

    Bad_Badness

    You are wanting a generalized causal relationship. Even if one is offered, it is not action-able-tradable with enough reliability.

    Asking for specific situations might allow you to get an idea of the forces at work, but it is not the same as predictable, generalized, action-able information.

    The other thing sub optimal about this question is it is framed in a mixed context. One one hand, you have your methods of trading, ala, 1960, fill a ticket and place an order. On the other hand you have 60 years of hard driven improvement and optimization by professionals trading using algorithms. Very advanced algorithms that are often not based on heuristics, which is what most traders use to trade.

    So you are sort of asking like a cave man asking how a Bic lighter works. Hard to advise the cave man when he does not understand the question enough, to setup an understandable answer for him.

    Hope that helps. If not, consider this explanation: the major players who move the market, do it for reasons and in ways that you do not use, understand, or can implement, YET.

    So stop trying to fit the square peg into the round hole. Start to study what they do, how they do it, and why. Then you will have a basis for better understanding.
     
    Last edited: Feb 19, 2022
    #25     Feb 19, 2022
  6. easymon1

    easymon1

    Sounds interesting. Have you expanded on aspects of your method on ET somewhere?
     
    #26     Feb 19, 2022
  7. spooz

    spooz

    No, I only talk in generalities on here.
     
    #27     Feb 19, 2022
    easymon1 likes this.
  8. schizo

    schizo

    Ever heard of "support & resistance"? What was once a major support is now a major resistance.
     
    #28     Feb 19, 2022
  9. spooz

    spooz

    It's a 50% SR level from something to the left of the chart.
     
    #29     Feb 19, 2022
  10. SunTrader

    SunTrader

    ! NQ 5min.png
    Globex overnight high basically 14298 - Lower horizontal line on 5 min chart.

    Personally other than first touch I see no use for it after.

    Prior breakdown bars - Middle and Upper horizontal lines drawn from provided a clue of what's to come:-
     
    Last edited: Feb 19, 2022
    #30     Feb 19, 2022