discussions from gkp topic

Broad-rock,

the answer is simple. You draw trendlines on closing prices line chart then convert the chart to candlesticks. That way you get the best of both worlds. Works a treat.

F4T

Broad-rock wrote: Hi F4T,

Just curious about disregarding the wicks on candlesticks, it would impossible to draw trend lines on a candlestick chart using closing prices only.

Also why use candlesticks and not a line chart on close prices only?

Hi F4T,

Just curious about disregarding the wicks on candlesticks, it would impossible to draw trend lines on a candlestick chart using closing prices only.

Also why use candlesticks and not a line chart on close prices only?

This discussion is spiralling.

The difference of opinion between myself and Remo is simple. It concerns the use and impact of the full range of a days trading.

That discussion impacts trendlines (close vs extremes), candlestick patterns,and other areas of TA.

Let me explain it one last time then I am moving on. I apologise if this sounds patronising but I have explained the following on here previously.

There are 4 marks in a period's (day for eg.) trading. Open high low and close. The most impotant is the close, next the open and less so the high and low. This is because the open and close are considered marks because there is an auction. The close is more important because the auction comes with a full days cash trading in consideration. There are all manner of odd and unusual non regular trades in a day, OTC's, negotiated trades, delayed trades from prior periods etc. These warp the actual price action and often distort the chart range giving unusual extremes to high or low.
This is why trendlines should be drawn on closing proces, not extremes of the wicks and the strength of candlesticks is in the read body form, not the wicks. If there is no real body (i.e. doji, gravestone doji, then the main significance is that the close = the open. But the real body, if present is the main indicator.

People can interpret things as they wish and other views are ok, but i'll say this once more; one should follow the majority or volume as that is what moves the market. The common interpretation is as above, so if you want a better chance of guessing the market moves, use closing prices and real bodies if available.

I have seen Three Inside Down play out many many times. It has played out perfectlyon GKP in the past.It is one of my favourite berish reversal patters after shooting star and cloud cover. It works, in GKP's current form and it is experience that tells me that.

Remo, you can disagree as much as you want on these issues but the consensus of opinion is with me. The US uses use my interpretation as do other international traders and let's not forget that the US drives world masrkets.

That's it. Now i'll move on. Let's see how GKP plays out on monday.

F4T

Weird...somehow my response got included in your quote!

remo wrote: hi jackozy
Thats not an inside bar on GKP.
everyones gonna think im having ago at everyone...lol

Ha ha! Lol - remo you tyrant!!

I didn't mean that GKP had an inside bar - I meant that the three inside down candle pattern is essentially an inside bar trade. I agree that GKP has not had either a 3 inside down, harami or an inside bar.

Let it go Big Boy, let it go...

Have a great weekend mate - it's been a great trading week and I suspect next week might be the same...

inside bar right now on dow 5 min char .19:20 candle n bang

WaveSurfer wrote: as previously mentioned by F4T there are many interpretations on this, and i have seen many times where body the contained with wicks piercing the previous body do indeed work. so i think it just boils down to the trend, candles at support / resistance, and confirmation of following candles.