How the Visual affect our mind (and actions)

Hi all, here is something for the weekend. Have a good one!
How the Visual affect our mind (and actions).
#tradingpsychology


The perception of colors are sometimes misleading

Let me ask you a question: what if, your candlestick chart, will be blank from colors? What I mean by that is, that instead of filling of black and white, or green and red, like most charts and traders have, you’ll see only but the shape of the candlestick?

Our world and mind is visual. We perceive, act and react based on the things we see, and what it refers to in our mind. They call it - Color Psychology. In general, Each person has its own agenda, on each color, and the way he\ she perceives it. But, Color Psychology itself has its perception and definitions to the different colors, for instance:

Did you know that Red is associated with love, warmth, and comfort? But, on the other hand, it is also considered an intense, or even angry, a color that creates feelings of excitement or intensity.
And Green represents tranquility, good luck, health, and jealousy?
White represents purity or innocence, and also described as cold, bland, and sterile.
etc., etc. For more about the Color Psychology and different color - click here
So, why are we painting our chart with colors that can trigger our minds, and sometime, in vain?

Let’s see an example:

This is a 1h TF chart, with black and white candlestick filling and a 20 EMA indicator.


This is the same chart, but with different colors:


You see all the different colors, above, below and with the trend? Green - bull, ooops, no - now its red - bear. And so on.

What if, you would of see the chart, this way:

Blank candlestick chart


No colors, no differentiation, no good or bad, no right or wrong. You are working solely based on the trend line, and not jumping the gun, on every tick that happens?

Thinks about it, manipulate and train our mind to work like a machine: Buy when crossed above, sell when crossed below - that simple. Working based on my trading plan - take profits, stop loses, etc, and no letting any thing, that is as simple of color of a shape, to get me out of the track.

Ok, wait a minute. As we know, this whole idea of different colors, is to alert us in times and situations that things go wrong, isn’t it? Yes, that is absolutely right. But, this is a different way of thinking, to manipulate the mind, and to help us, overcome our feelings throughout our day job and while looking at the charts.

This Technique can be very useful and powerful for Newbies. The Newbie, at first, is trying to guess the direction of a trend, or a reversal, or what ever, based on the color of the candlestick, shape, etc. Instead, the Newbie, trains his mind to go with the trend, and not react to the different signs and signals on the way, no matter what goes in the background. Everybody is saying the old saying - “Go with the trend”. But, the different signals on the way can be misleading and deceiving, and causes our mind to question our actions and thoughts, right? So, why not eliminate this misinformation on the way to our destination?

So, what do you think? Can this method can help us as newbies?

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nice thought. similar thinking as I am, but I prefer to shift chart into line chart, and do the trendline. candlestick may good when defining OHLC price, but the main issue with candlestick is the ‘kage’ ‘shadow’ some said a ‘whipsaw’, it often lead into a secondary analysis which affect upon entry execution. the color idea are good one, if this continue a new breed of trader may born, single color chart trader :).

Yeah, well, we thought of that but, the difference between the line chart and the candlestick chart, is a clearer entry and perhaps also exit points. Also, training the eye for different kind of candlestick formations and harmonic pattern… Anyhow, we liked your thought about the name: the single color trader. It might catch… (;