Redefining the Arbitrary

[TheBramble]

Nice work Blackcab and good points Trendie.

Rather leading toward non-indicator based trading using tick data and basic Support/Resistance, trendlines etc and nothing too fancy.

 

[blackcab]

Agree - daily open/close actually means something. Maybe hourly open/close means something too perhaps, but I doubt 1-minute open/close does. It might give a little clue to direction of movement within the bar, but mm, not sure.

Candlesticks 9 & 10 differ hugely between the 1st and 2nd chart, and that's just changing the start time by a minute! Candlestick shape analysis = blx?

 

[barjon]

mmm, a couple of points.

imo the actual open/close is only important where it relates to a legitimate trading period which I'd define as the opening and closing of dealing books (mainly daily). Some importance on the close at the end of recognised accounting periods (weekly, monthly, yearly) but manipulation here?

On the other hand it seems important to know which way prices are moving whatever the time frame is used (eg: I like to buy when the price is moving up through my entry point and not down to it ) and candlesticks do it for me.

People often talk about keeping track of the wider time frame perspective and I find melding candlesticks quite a good way of seeing how prices are moving over the longer term. eg: I'm mainly eod so my primary chart is daily candlesticks but I can alter it to 2 day, 3 day, 4 day etc easily without dashing to another chart. Do you guys have that facility on the intraday periods?

good trading

jon

 

[pogle]

This is something I've been pondering for a while. Frugi mentioned the use of 'unusual' time frames on the 1-2-3 thread recently. I've just gone a step further and started looking at charts where the bars are delineated by volume rather than time periods. Sierrachart now allows this.

Now obviously this won't work for price and volume strategies, as I've just standardised the volume part, but it may have merit for something like 1-2-3's and Ross Hooks where volume isn't generally considered significant.

Has anyone else looked at these types of charts and come to any conclusions?

pogle