Hi everyone
Can someone please reccomend a good DVD or CD for beginners,
on candlestick charting.
Thanks.
- #2
- Aug 21, 2005 9:05pm Aug 21, 2005 9:05pm
- | Commercial User | Joined Feb 2005 | 2,875 Posts
Hi everyone
Can someone please reccomend a good DVD or CD for beginners,
on candlestick charting.
Thanks.
- #6
- Aug 22, 2005 4:23am Aug 22, 2005 4:23am
- Joined Sep 2004 | Status: Trader | 1,464 Posts
there are tons of good books at your local bookstore on the subject. my opinion is bar charts tell you the same things and are much easier especially for beginners. i think candlestick charting is a racket. just my opinion. jim
), I dropped candlestick patterns. However, I do still switch to candlesticks occasionally, simply because they are easier on my eyes. Bars do have another great advantage: because they are narrower, you can see more of them on the screen at one time.Dial
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I have to agree with Jim. I started with candlesticks and tried trading with things like the doji, tombstone, harami and bullish/bearish engulfing patterns. But after Jim taught me the value of bars (no, not that kind
Dial
Steven
- #11
- Edited 11:49pm Aug 24, 2005 8:09pm | Edited 11:49pm
- Joined Sep 2004 | Status: Trader | 1,464 Posts
Thanks James for your reply.
I have another question.
I have looked at several links explaining moving averages.
I hope i dont sound too stupid here, were are they on a chart,
and exactly how are they calculated.
Can someone give me some examples if possible???
Thanks
You have to add a moving average to your chart using whatever method is provided for that purpose in the charting package you are using. It varies between packages. When you add it you choose how many periods (bars) you want averaged. Ususally, the close of the bar is the value used in calculating the average. Simple moving averages (sma) and Exponential moving averages (ema) are the most commonly used. The main difference is that in a sma all values are given equal weight, whereas in an ema the more recent values get more weight. I don't know how to calculate an ema so I'll show an example for a simple moving average. On the chart below, I've marked the close of 10 bars with a white dot. If you add all ten values together, then divide the sum by 10, you'll get the average value of those ten closes. This is shown as a blue dot above the tenth bar. To get the next point on the sma, you'd simple drop the oldest bar (bar number 1 on the chart) and add the next bar after bar number 10 on the chart. Then simply calculate the average same as before. You keep doing this over and over, dropping the oldest bar, and adding the newest bar, and recalculating the average. This gives you a series of points (like the blue dot) that will trace a curve on your chart. That curve is the simple moving average line. Using a different number of bars, or choosing a different point, like the open instead of the close, or choosing a different calculation like exponential, will yield a different curve on the chart. The best way to learn is to experiment on a charting package.
Dial
sxaxlxvxaxtxixoxnxbxyxgxrxaxcxexdxoxtxoxrxgx
- #12
- Aug 24, 2005 8:19pm Aug 24, 2005 8:19pm
- | Commercial User | Joined Feb 2005 | 2,875 Posts
You are not permitted to ask stupid questions on this forum.....that's my job
You have to add a moving average to your chart using whatever method is provided for that purpose in the charting package you are using. It varies between packages. When you add it you choose how many periods (bars) you want averaged. Ususally, the close of the bar is the value used in calculating the average. Simple moving averages (sma) and Exponential moving averages (ema) are the most commonly used. The main difference is that in a sma all values are given equal weight, whereas in an ema the more recent values get more weight. I don't know how to calculate an ema so I'll show an example for a simple moving average. On the chart below, I've marked the close of 10 bars with a white dot. If you add all ten values together, then divide the sum by 10, you'll get the average value of those ten closes. This is shown as a blue dot above the tenth bar. To get the next point on the sma, you'd simple drop the oldest bar (bar number 1 on the chart) and add the next bar after bar number 10 on the chart. Then simply calculate the average same as before. You keep doing this over and over, dropping the oldest bar, and adding the newest bar, and recalculating the average. This gives you a series of points (like the blue dot) that will trace a curve on your chart. That curve is the simple moving average line. Using a different number of bars, or choosing a different point, like the open instead of the close, or choosing a different calculation like exponential, will yield a different curve on the chart. The best way to learn is to experiment on a charting package.
Dial
