How to draw a chart with pen and paper | Forex Factory

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How to draw a chart with pen and paper

  • #1
  • First Post: Edited 8:42am Nov 29, 2011 8:29am | Edited 8:42am
Hello guys,

after looking into the information gathered in this thread for the past few months I come to a point where I think it might be beneficial to learn the art of drawing a chart with my own hands (i.e. with pen and paper). But how do you do that? Where do you start? Where can I get demand and supply schedules for practicing purposes and how do I apply them on a self-drawn chart over time (x-axis)? Are there any well hidden manuals on the net that could help me with this task?

Any clues, links, help and experience on this topic would be greatly appreciated.

Kind regards
Hans
Thanks J16, Sam Seiden, Udine and Jacko
  • #2
  • Nov 29, 2011 9:20am Nov 29, 2011 9:20am
I'm sorry, I think another question must be: How did the old trading veterans back in the days draw their charts? Is it even possible to draw it from a supply/demand schedule or can you only draw it on the basis of opens and closes?

BTW, my aim is to understand touroughly how demand and supply look on a chart over time.
Thanks J16, Sam Seiden, Udine and Jacko
  • #3
  • Nov 30, 2011 9:16am Nov 30, 2011 9:16am
They would draw charts from tickertape. Try a search engine. That should get you started. Cheers!
Gone to a better place
  • #4
  • Nov 30, 2011 10:30am Nov 30, 2011 10:30am
Quoting smikester
They would draw charts from tickertape. Try a search engine. That should get you started. Cheers!
Googleing ticker tape brought up some intersting articles that sure will help. Thank you very much!
Thanks J16, Sam Seiden, Udine and Jacko
  • #5
  • Nov 30, 2011 10:52am Nov 30, 2011 10:52am
To draw a chart by hand all you need is the open, high, low and close of the interval.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #6
  • Nov 30, 2011 11:39am Nov 30, 2011 11:39am
Quoting HiddenGap
To draw a chart by hand all you need is the open, high, low and close of the interval.
Thanks, HiddenGap. I wonder what the best method would be to learn more about the ongoing supply and demand relationship. Is there any chart drawing method that relies on supply/demand schedules or something like that?
Thanks J16, Sam Seiden, Udine and Jacko
  • #7
  • Nov 30, 2011 11:58am Nov 30, 2011 11:58am
why would you want to draw a chart? stop wasting your time and invest your time and effort into learning modern trading tech like programming.....
  • #8
  • Nov 30, 2011 12:00pm Nov 30, 2011 12:00pm
Quoting mfoste1
why would you want to draw a chart? stop wasting your time and invest your time and effort into learning modern trading tech like programming.....
Hi mfoste, never thought about that. What exactly do you mean by 'modern trading tech like programming' and what would be the benefit from learning it?
Thanks J16, Sam Seiden, Udine and Jacko
  • #9
  • Nov 30, 2011 12:02pm Nov 30, 2011 12:02pm
Quoting HanSolo
Hi mfoste, I don't understand. What would be the benefit from learning modern trading tech like programming?
What I'm trying to say is that market dynamics are constantly and recently increasingly changing. I think older more traditional techniques such as trendlines, tape reading etc are becoming obsolete. Markets are now run by intelligent algos that seek to take you out of positions. They understand and react to how discretionary traders are placing orders. All I'm saying is that you need to adapt to the current market in order to survive in the long run.....
  • #10
  • Nov 30, 2011 12:14pm Nov 30, 2011 12:14pm
Quoting mfoste1
What I'm trying to say is that market dynamics are constantly and recently increasingly changing. I think older more traditional techniques such as trendlines, tape reading etc are becoming obsolete. Markets are now run by intelligent algos that seek to take you out of positions. They understand and react to how discretionary traders are placing orders. All I'm saying is that you need to adapt to the current market in order to survive in the long run.....
Ah ok, I understand. So would you say that good old (human) supply and demand don't play such a big role anymore?
Thanks J16, Sam Seiden, Udine and Jacko
  • #11
  • Nov 30, 2011 12:19pm Nov 30, 2011 12:19pm
Quoting HanSolo
Ah ok, I understand. So would you say that good old (human) supply and demand don't play such a big role anymore?

No, not at all my friend. All I'm saying is that there are more efficient ways of identifying those S&D levels, backtesting them, and developing a strategy to trade them rather than slaving over a pen and paper. Sorry, my previous post may have been a little bit unclear as to the point I was trying to make.
  • #12
  • Nov 30, 2011 1:54pm Nov 30, 2011 1:54pm
Quoting HanSolo
Thanks, HiddenGap. I wonder what the best method would be to learn more about the ongoing supply and demand relationship. Is there any chart drawing method that relies on supply/demand schedules or something like that?
I think you are talking about Point and Figure charting. Which, of course, was done by hand back in the day.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #13
  • Nov 30, 2011 2:03pm Nov 30, 2011 2:03pm
Quoting mfoste1
... All I'm saying is that there are more efficient ways of identifying those S&D levels, backtesting them, and developing a strategy to trade them rather than slaving over a pen and paper....
I would not be so quick to discount the power of drawing charts by hand. Whilst it is true that the old masters had to draw charts by hand (computers and the internet did not always exist), I believe they would say the process was invaluable and worth doing, at least for some time, even in a world were technology has brought efficiencies.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #14
  • Nov 30, 2011 2:11pm Nov 30, 2011 2:11pm
A quick story.

As you may or may not know, I am a big believer in and practitioner of WRB Analysis. The discoverer of WRB Analysis started off by drawing charts by hand while in high school way back when. Mark noticed that price would often "react" around some areas on his charts where there were "Gaps". These were not actual gaps but rather places where he had missed data for whatever reason. When the data was filled, he noticed that these missing intervals often had large bodies (open-close). This became the naissance of WRB Analysis.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #15
  • Last Post: Dec 1, 2011 2:24am Dec 1, 2011 2:24am
Quoting HiddenGap
I would not be so quick to discount the power of drawing charts by hand. Whilst it is true that the old masters had to draw charts by hand (computers and the internet did not always exist), I believe they would say the process was invaluable and worth doing, at least for some time, even in a world were technology has brought efficiencies.
I absolutely agree. The pattern and formation of bars or candles is fundamental to price action knowledge. I have never drawn a complete chart by hand but I have drawn single bars or candles and sequences and the insight gained was surprising.
Gone to a better place
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