Disliked{quote} Thanks Sis but a candle is formed within it's life time and initially it can start forming the candle at one side of the open price but anytime within it's lifetime, it can go to opposite side and form the candle there leaving the former as wick and later as candle in which case it is a loser. Please correct me if i'm wrong.Ignored
- #62
- Apr 4, 2015 11:27am Apr 4, 2015 11:27am
{quote} Thanks Sis but a candle is formed within it's life time and initially it can start forming the candle at one side of the open price but anytime within it's lifetime, it can go to opposite side and form the candle there leaving the former as wick and later as candle in which case it is a loser. Please correct me if i'm wrong.
Think about it logically.... of course yes there are some candles that do that. You don't need to buy and sell every cross as you have control over when and where you enter. You will lose some of the time. FACT. You have control over how you can minimise those losses and maximise your winners. Question is how do you know when the odds are more in your favour of price continuing? From your own studies you might see a certain deviation from your chosen reference point gives you a better chance.
Fact is nobody knows for sure what price is going to do. We cannot predict with certainty.
We know that we can still be successful if we lose more trades then we win as long as we keep our losses small relative to our wins.
Through my learning I have started to understand the true nature of the market. If I am to survive and then win I must be in line with and not trying to fight against it. Having a point of reference gives us the best chance of understanding the market and where we need to be in relation to it.
Just to add....KEEP on asking questions and try to find answers for yourself. That question is one of the questions I had to answer for myself and I have gained a lot of from the journey.
An expert is a man who has made all the mistakes which can be made
{quote} Think about it logically.... of course yes there are some candles that do that. You don't need to buy and sell every cross as you have control over when and where you enter. You will lose some of the time. FACT. You have control over how you can minimise those losses and maximise your winners. Question is how do you know when the odds are more in your favour of price continuing? From your own studies you might see a certain deviation from your chosen reference point gives you a better chance.
So, you are saying that the 'EXIT' plays a very important role here than the 'ENTRY' of a trade. exiting earlier will reduce the losses if trade is against us. But there is another parameter here which plays an important role in taking a trade i guess?
Is that the influx? 
- #65
- Edited 12:08pm Apr 4, 2015 11:52am | Edited 12:08pm
- Joined Nov 2007 | Status: Trader | 3,060 Posts
We learn that from the opening price of any candle we can EXPECT MOVEMENT. What we don't know at this stage is in what direction. For me to scalp GU within a single candle there needs to be enough movement. For me there is not enough movement in anything lower than a 1hr candle. My stats show than during my chosen hours the average range of a 1hr candle is 22.82 pips. So during each hour I only need to capture some of this range.
Opening price is a critical part of gauging performance for any product/instrument/investment etc
Fluid or current market over opens will give you performance.
An open price is a static reference point.
If current market is trading not only above Tokyo but is better bid out of London, that is the market giving you 'right side' of trade.
We use this principle all the time in the real world and it works like a charm in trading too.
The best thing about this is, the market just straight out gives you the answer.
Regards
- #67
- Apr 4, 2015 12:42pm Apr 4, 2015 12:42pm
I want to leave an idea.
"95% of the time price will close above or below the open." this means that 95% of the time price is moving.
Let me say that you are in a train looking outside of the window and the train is moving very slowly, so slow that your body can't feel the force impressed by the move. How do you know if it's moving forward or backword?
Implicitly looking outside you choose a reference point (a tree, street, whatever is fixed) and then you see if you are going to that reference point or away from that.
But here comes something that somebody doesn't pay attention to.
There is not only one reference point, there are two reference points: one is the reference point you choose (static), the other is you (dynamic).
What about that, when the train goes far away from your static reference point and you can't see it anymore.
How do you know if you are still moving in the same direction or reversing? Or maybe you are not moving.
Simple, choose a new reference point.
Price is "always" moving, why would you take a fixed reference point?!
Alex
"95% of the time price will close above or below the open." this means that 95% of the time price is moving.
Let me say that you are in a train looking outside of the window and the train is moving very slowly, so slow that your body can't feel the force impressed by the move. How do you know if it's moving forward or backword?
Implicitly looking outside you choose a reference point (a tree, street, whatever is fixed) and then you see if you are going to that reference point or away from that.
But here comes something that somebody doesn't pay attention to.
There is not only one reference point, there are two reference points: one is the reference point you choose (static), the other is you (dynamic).
What about that, when the train goes far away from your static reference point and you can't see it anymore.
How do you know if you are still moving in the same direction or reversing? Or maybe you are not moving.
Simple, choose a new reference point.
Price is "always" moving, why would you take a fixed reference point?!
Alex
- #69
- Apr 4, 2015 12:59pm Apr 4, 2015 12:59pm
Now we are cooking....
Some great responses.
Although I started this thread with the focus on a single candlestick I recognise that the market is not time-dependant and the reference does not need to be static.
My demo explorer was based on trades using a single candlestick as my reference but I realise the potential to be more free. I just find it stops me over trading.
Some great responses.
Although I started this thread with the focus on a single candlestick I recognise that the market is not time-dependant and the reference does not need to be static.
My demo explorer was based on trades using a single candlestick as my reference but I realise the potential to be more free. I just find it stops me over trading.
An expert is a man who has made all the mistakes which can be made
Price is "always" moving, why would you take a fixed reference point?!
Price is just a number, nothing more.
Therefore to gauge how well something is doing you need a static. Open is the best for doing this.
Get a chart and delete everything on there but leave the price banging up and down in the 'y' axis. What do you get? No information whatsoever. It's absolutely useless.
Regards
- #76
- Apr 4, 2015 1:49pm Apr 4, 2015 1:49pm
Neio I was not referring especially to you if you thought that, mine was more like "I leave an idea maybe someone can take advantage from it, elaborate and create something new". Do you know what is an ability of human? We are able to adapt ourself to different situations. It's like changing our reference point. Our life is full of variables, we live in a dynamic world, we are dynamic. Back to the train or better a plane. Have you ever taken a flight? When plane start moving, with a lot of acceleration, you feel a senstaion through your body. What...
An expert is a man who has made all the mistakes which can be made