I need help on Welspun Gujarat chart

[fire_gun]

iwant to ask how to read marked area where only straight lines r coming in no candle is formed in this chart...should i consider this as consoildation???? senior member plzz reply

 

[aad]

Re: iwant help on welspun gujrat chart

iwant to ask how to read marked area where only straight lines r coming in no candle is formed in this chart...should i consider this as consoildation???? senior member plzz reply

Straight lines are probably a result due to some 'view' settings modified at your end. Chart shows candles very well. Enclosed herewith is the latest chart as shown in Amibroker.

Regards,

Abhay

 

[AW10]

iwant to ask how to read marked area where only straight lines r coming in no candle is formed in this chart...should i consider this as consoildation???? senior member plzz reply

There should be something wrong with Charting Software..Because Candle Sticks always have a column or atleast a horizontal bar when open and close price are same. (as you can see from the chart posted by Abhay).
Regarding interpretation of those candles, you are right, price is in consolidation stage (no continuation of Lower Low, Lower Highs but all mixed up bars). Moreover these bars are having appoximately same high.. that means somebody is selling aggressively at that price and hence prices are not able cross this level. In last few candles, Though we are seeing higher lows. So depending on your style of trading, you can play it in 2 ways,
1) If you are long term, trend follower then wait till you see breakout in either direction.
It is possible that this is consolidation in downward move.
2) If you are aggressive trader and disciplined to play with strict stoploss then there is great trading opportunity to go long (higher lows are mildly bullish here) with stop loss at the low of lowest bar of this consolidation. You risk is pretty small.. but if the mild bullish happen to turns into bullish breakout, then you are in for party.

Happy Trading.

 

[fire_gun]

There should be something wrong with Charting Software..Because Candle Sticks always have a column or atleast a horizontal bar when open and close price are same. (as you can see from the chart posted by Abhay).
Regarding interpretation of those candles, you are right, price is in consolidation stage (no continuation of Lower Low, Lower Highs but all mixed up bars). Moreover these bars are having appoximately same high.. that means somebody is selling aggressively at that price and hence prices are not able cross this level. In last few candles, Though we are seeing higher lows. So depending on your style of trading, you can play it in 2 ways,
1) If you are long term, trend follower then wait till you see breakout in either direction.
It is possible that this is consolidation in downward move.
2) If you are aggressive trader and disciplined to play with strict stoploss then there is great trading opportunity to go long (higher lows are mildly bullish here) with stop loss at the low of lowest bar of this consolidation. You risk is pretty small.. but if the mild bullish happen to turns into bullish breakout, then you are in for party.

Happy Trading.

thanx for replying {aad and aw10}