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Message |
     damo82
Member
Username: damo82
Post Number: 1
Registered: 05-2007Rating: N/A
Votes: 0
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| | Monday, May 07, 2007 - 07:53 pm: |  
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Hello when drawing trend lines, ie break outs, support and resistance lines etc, is it best to use the closing price or the high price to draw the lines? and what type of chart is best to use when drawing the trend lines? OHLC Chart or line chart? Im finding line chart allot easier to identify the support and resistance lines but not sure if it is more accurate to use the OHLC
thankyou
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ohkoolnutz
Member
Username: ohkoolnutz
Post Number: 570
Registered: 10-2005
Rating: N/A
Votes: 0
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| | Tuesday, May 08, 2007 - 10:44 am: |
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highs and lows on OHLC charts
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ohk
Lies, Damn Lies and Technical Analysis
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wombat40
Member
Username: wombat40
Post Number: 108
Registered: 07-2004Rating: N/A
Votes: 0
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| | Thursday, May 10, 2007 - 11:24 pm: |
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too specific koolnuts.....trend lines are not a science....they can be used for open close or whatever...all depens on users preberence
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ohkoolnutz
Member
Username: ohkoolnutz
Post Number: 577
Registered: 10-2005
Rating: N/A
Votes: 0
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| | Friday, May 11, 2007 - 12:23 am: |
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To each their own but I wouldn't use a breakout system with a line where part of the price action is on the other side of the fence. You'd be looking at a lot of false triggers if you didn't take highs and lows into account. That is a lot of wasted brokerage and drawdowns.
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ohk
Lies, Damn Lies and Technical Analysis
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hershy
Member
Username: hershy
Post Number: 1988
Registered: 10-2002
Rating: N/A
Votes: 0
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| | Friday, May 11, 2007 - 06:43 am: |
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I think it is relative to the needs of the user.
An investor would get far better results from a line chart while a trader, especially a day or week trader would be lost without highs and lows.
It is an argument I have had - and Failed to win, many times but am loath to give in.
By way of example I post two charts of Watpac. A line chart shows an ascending triangle with a fairly well defined top. A breakout and retest is obvious and an entry signal generated much earlier than the candle chart where the triangle top is more inferred than shown, the ascending leg is has less validity due to fewer touches with a breakout becoming apparent much later and the re-test still in process. One example does not prove anything but I threw this is as I am in the process of tracking WPC.
A further point of interest is that though of the same security and period, the charts show different targets. They may both be wrong, right or one each way.
(Message edited by Hershy on May 11, 2007)
"The safest way to double your money is to fold it over and put it back in your pocket."
http://members.optusnet.com.au/~hershy/
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damo82
Member
Username: damo82
Post Number: 2
Registered: 05-2007Rating: N/A
Votes: 0
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| | Thursday, May 10, 2007 - 11:54 pm: |
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Im finding the line chat a lot easier to draw the trend lines and more accurate thanks for your suggestions
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qed
Member
Username: qed
Post Number: 67
Registered: 01-2006Rating: N/A
Votes: 0
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| | Thursday, May 24, 2007 - 09:48 pm: |
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nice 1 hershy ,,hope u backed it
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hershy
Member
Username: hershy
Post Number: 1994
Registered: 10-2002
Rating: N/A
Votes: 0
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| | Thursday, May 24, 2007 - 11:04 pm: |
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Actually I did and am wondering just now what to do.
The constant fear v. greed fight is raging in my head/heart.
And - to stay on topic, with this struggle in my mind, it's the candlestick charts that I am using. They do show consolidation after a sharp move up. I fear profit takers will get jittery if the move up does not continue and ignite a bearish move to around $4.60 but for now, I am holding. or...
I think I will hold.
or............
"The safest way to double your money is to fold it over and put it back in your pocket."
http://members.optusnet.com.au/~hershy/
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