New to day trading - appreciate help

#11
@Mohan.sic

Your above post can be adapted even to bars or any other kind of charts which shows LHOC in any time frame we use in trading.

As you came up with the topic, may I ask why you value it as black and white picture, as if we compare different time frames, even use different time frames in our trading, the black and white picture is gone.

So I do, without any comment agree with you that when using just one time frame and only candles, then we can be trapped with the mentioned black and white thoughts and analyzes, but who trades like that?

I may missed the point in your post as I not even want do any critics on it. Kindly correct me if I do not see the point you want to bring on the table with your post.

Take care and have a nice Sunday evening / Dan :)
 

mohan.sic

Well-Known Member
#12
@Mohan.sic

Your above post can be adapted even to bars or any other kind of charts which shows LHOC in any time frame we use in trading.

As you came up with the topic, may I ask why you value it as black and white picture, as if we compare different time frames, even use different time frames in our trading, the black and white picture is gone.

So I do, without any comment agree with you that when using just one time frame and only candles, then we can be trapped with the mentioned black and white thoughts and analyzes, but who trades like that?

I may missed the point in your post as I not even want do any critics on it. Kindly correct me if I do not see the point you want to bring on the table with your post.

Take care and have a nice Sunday evening / Dan :)
Flipperson was asking on cadlestick patterns and support and resistance zones in trading. My post was in context of one part of his question "candlestick patterns as a method"

On Black & white picture: Here by saying that word b&w, my intent was not to show candlestick in lowlight. Infact my view is entirely different. Am trying to highlight the beauty of the candle- how one candle can give a overall idea of the timeframe. If i consider a day candle as an example, i said it gives the b&w picture of that days price movement and the real intraday chart in 1mt or 5 mt will give the clolorful picture of that day. I used b&w in that taste.

The entire point was on candlestick patterns and their interpretations like Doji, hanging man, sleeping baby what ever names.

Yes exp traders align different timeframes and take a decision.

But my point was not on Time Frames. I used concept of different time frames to explain how candle patterns could mislead.

To explain it other way, let me take concept of "support and resistance zones". On a Hourly chart, there is a strong support zone at 1000 levels. Now switch to Daily charts, still the support zone would exist and could be seen on a different time frame.

But Candle patterns wont exist that way between time frames. They change.

Its all about candlestick patterns. Time frames was brought in just to explain the flaw in interpreting patterns.
 

tradingstudent

Well-Known Member
#13
Candle sticks: What is the use of candle stick charts ?

Problem is we misuse candle sticks.

What is the use of a candle.. By looking at a candle ( 1 mt time frame candle for example ) what we can understand is the price point at the starting of that minute, the high it touched, its low and its closing point for that minute.
So a candle is giving a black & white picture of price movement during that minute. This is the use of a candle.
But there is lot of unnecessary info on cadle stick patterns. Doji, hammer, etc etc... This is again trash for current generation trading.

A simple example: Lets say on a 1 minute chart you saw a Doji and lets say its a bullish sign. Now open a 5 mt chart and you wont see that Doji ..you may see a hammer which could be a sell signal.. Now open a higher time frame chart, say 15 mt and you may see a pattern like Bullish reversal.
So the same chart data is giving you different signals on different time frames.

Interpretations change as you blend more candles into data.
Mohan,

Interesting way of interpreting or should i say you shed light on the subjectivity of the candles.

So, in your experience what primary purpose do candle sticks serve?
 

mohan.sic

Well-Known Member
#14
Mohan,

Interesting way of interpreting or should i say you shed light on the subjectivity of the candles.

So, in your experience what primary purpose do candle sticks serve?
purpose of candle is to present OHLC numbers and if close is above or below the open. Its a excellent way of presenting the day's action. And we have to use it for that purpose i/o of studying patterns in it.

And i think these days people trading based on these candle patterns are very less.
 

amandeep86

Well-Known Member
#15
About another day trading rule: You often read about Risk Reward ratio. This is one another nonsense.

Keep a stoploss of 1 point and a target of 3 points is trash.
That wont work.
Could you share what works then :annoyed::annoyed: ??
 

amandeep86

Well-Known Member
#18
Why are you annoyed :). I just told what wont work.

I dint say that i know something that works.;)
:lol::lol::lol:

Actually Risk reward of 3 R works only if your entry is at Whole sale price as compared to retail traders where all Pros enter...:D:D:D

Rest all is Bookish knowledge