i find candle stick charts very useful. actually those are he only charts i use, also the reason why i dont use neowave charts so far.
i have found candle stick charts to be very useful when used with 20 dema and 50dema . plot the 20dema nd 50 dema on the chart. when market enters some consolidation and is continuing with the trend and the 'wave' , one will see a lot of supporting activity , the so called candle stick patterns near 20 and 50 dema.as one gets trained to see these charts , one has an intutuive feel whether a support is going to hold or not.typically at such supports one will see a lot of hammers, dojis, small body candles indicating support.
When you use candlesticks on securities such as Gold or Euro do you use 24 hour data? Part of me would like to do so because these are really "global" securities that trade with significant volume around the clock. But doing so eliminates gaps on daily charts which reduces the usefulness of some of the candlestick indicators. Gaps would still show up on weekly charts.
On securities such as SPX and T-Notes, I think it is clear that the candlestick charts should use only data from the cash sessions - since these are primarily US securities that trade with significant volume during the US market hours.
On a similar note, do you use candlesticks on hourly charts since gaps will no show up on these charts either.
For Neowave, I have been using only US cash-market data for Gold, Euro, SPX and T-Notes.
i find candle stick charts very useful. actually those are he only charts i use, also the reason why i dont use neowave charts so far.
ReplyDeletei have found candle stick charts to be very useful when used with 20 dema and 50dema .
plot the 20dema nd 50 dema on the chart.
when market enters some consolidation and is continuing with the trend and the 'wave' , one will see a lot of supporting activity , the so called candle stick patterns near 20 and 50 dema.as one gets trained to see these charts , one has an intutuive feel whether a support is going to hold or not.typically at such supports one will see a lot of hammers, dojis, small body candles indicating support.
I will keep an eye on these indicators moving forward and try to get the intuitive feel that you mention.
ReplyDeleteits not just intutive. it ll be on the charts.
ReplyDeletewhat i meant was an innate understanding of the chart by using 20 and 50 dema with candlesticks.
When you use candlesticks on securities such as Gold or Euro do you use 24 hour data? Part of me would like to do so because these are really "global" securities that trade with significant volume around the clock. But doing so eliminates gaps on daily charts which reduces the usefulness of some of the candlestick indicators. Gaps would still show up on weekly charts.
ReplyDeleteOn securities such as SPX and T-Notes, I think it is clear that the candlestick charts should use only data from the cash sessions - since these are primarily US securities that trade with significant volume during the US market hours.
On a similar note, do you use candlesticks on hourly charts since gaps will no show up on these charts either.
For Neowave, I have been using only US cash-market data for Gold, Euro, SPX and T-Notes.
I am wondering what you do?