Questioning the Facts | Forex Factory

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Questioning the Facts

  • #1
  • First Post: Apr 5, 2007 6:05pm Apr 5, 2007 6:05pm
After trading with technical analysis for sometime, I am wondering why we use values like (Close, Open, High, Low) to calculate the value of a technical indicator. Each value is just one tick value in a period of time.

that is why the value of 9 EMA on 1H chart has different value than 540 EMA (9*60) on 1M chart.

anyone has a good experience with a tick chart?
any thoughts on finding more reliable information to use on technical analysis?
  • #2
  • Apr 5, 2007 6:25pm Apr 5, 2007 6:25pm
The reason that I can think of is those OHLC value are what most people use.
In this business, you don't want to be too different from everyone else because the idea is to follow the market(people). You need to be in-synch with most of the market to be profitable. This is the reason why Fibonacci's and pivot support lines work.
  • #3
  • Apr 5, 2007 8:04pm Apr 5, 2007 8:04pm
Quoting lalilo
After trading with technical analysis for sometime, I am wondering why we use values like (Close, Open, High, Low) to calculate the value of a technical indicator. Each value is just one tick value in a period of time.

that is why the value of 9 EMA on 1H chart has different value than 540 EMA (9*60) on 1M chart.

anyone has a good experience with a tick chart?
any thoughts on finding more reliable information to use on technical analysis?
Try Using MP instead. ((H-L)/2) + Low
  • #4
  • Apr 5, 2007 9:11pm Apr 5, 2007 9:11pm
Quoting lalilo
After trading with technical analysis for sometime, I am wondering why we use values like (Close, Open, High, Low) to calculate the value of a technical indicator. Each value is just one tick value in a period of time.

that is why the value of 9 EMA on 1H chart has different value than 540 EMA (9*60) on 1M chart.

anyone has a good experience with a tick chart?
any thoughts on finding more reliable information to use on technical analysis?
Your question is a good one especially in 4X. Actually open and close are less significant in 4X because the market doesn't open and close like other investment vehicles. A candle or bar close is more worthy data in say stocks than a major pair..

What matters more in 4X is highs and lows. Tick data alone does not portray the present dynamic of price action like analyzing highs and lows in several time frames.

btw, using a "median" setting is simply a variation of the high/low principle.
  • #5
  • Last Post: Apr 5, 2007 9:43pm Apr 5, 2007 9:43pm
Your question is a good one ...
What matters more in 4X is highs and lows.
According to Whome? Does this mean you trade based on the High {or Low} of a spike?
Tick data alone does not portray the present dynamic of price action like analyzing highs and lows in several time frames.
Sounds like you are quoting someone else's words and I also think I know whos' words those might be. If it were him that posted that reply it would have been worded differently and that is but one other facet you have yet to learn from him.

btw, using a "median" setting is simply a variation of the high/low principle.

Uh Duh... I only posted "MP" and how to calculate it. If the reader can't figure out that it is contained between the High And Low of the Bar, perhaps they require more research before taking the plunge. Or perhaps you were just crowing that you understood "MP"

Now that I got that off my chest...
It would appear that you are listening to some pretty smart Traders. Don't stop doing that but Please, do not feel that the last lesson you were taught is the penultimate. This is a long row to hoe.

Perhaps I read your post entirely wrong and if so, I really do apologise and ask that you repost with more clarification. On the other hand, If I read it correctly...
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