Hello All, New to the forum. Cheers to you all;
Trying to make sense of something...hopefully I can explain it correctly. When trying to gauge momentum, dropping down to 15 min charts, will give you a much better picture of current price momentum than looking at a typical 4hr chart.
HYPOTHETICALLY: A scalp line forms at a point where over the course of 10 days, price causes 2 bounces... on 4Hr charts, the bounces look as though they had strong momentum, but on 15min charts, you can see that there was a slower moving, consistent bull-bear battle going on, and over the course of say, 8 hrs, caused long bodied, short wick candles (although volatility is shown through longer wicks and shorter bodies, there can also be volatility on long body short wicks as well, i think).
Is this something to consider before trading off an approaching scalp line (or should this be known before, when charting the scalp line)? Or, does the fact that, two prior bounces occurring off the same point mean its a strong line? I would think that the momentum nearest to the bounce, should give more information as to the strength of the line...than further away.
Is there a "pip amount" that can be considered a worthwhile bounce, or is it all relative to prior information: other S/R areas/zones, prior scalp line levels, etc..
Should precedent be given to 15 min or 4 hr charts in this instance?
Hope this makes sense.
Thanks!!
Trying to make sense of something...hopefully I can explain it correctly. When trying to gauge momentum, dropping down to 15 min charts, will give you a much better picture of current price momentum than looking at a typical 4hr chart.
HYPOTHETICALLY: A scalp line forms at a point where over the course of 10 days, price causes 2 bounces... on 4Hr charts, the bounces look as though they had strong momentum, but on 15min charts, you can see that there was a slower moving, consistent bull-bear battle going on, and over the course of say, 8 hrs, caused long bodied, short wick candles (although volatility is shown through longer wicks and shorter bodies, there can also be volatility on long body short wicks as well, i think).
Is this something to consider before trading off an approaching scalp line (or should this be known before, when charting the scalp line)? Or, does the fact that, two prior bounces occurring off the same point mean its a strong line? I would think that the momentum nearest to the bounce, should give more information as to the strength of the line...than further away.
Is there a "pip amount" that can be considered a worthwhile bounce, or is it all relative to prior information: other S/R areas/zones, prior scalp line levels, etc..
Should precedent be given to 15 min or 4 hr charts in this instance?
Hope this makes sense.
Thanks!!
