Determine a market direction using line chart?

Hey,

Hello is me again. David. Recently because of the mindset of sacrificing big loss to make small gains.

I’ve been trying to understand weakness and strength. Complication arises when the market is view in candlestick or pin bars.

So today at CNY I replace the price as line chart. Everything change. My understanding of market strength got better and where weakness lies.

Anyone here uses line chart to trade instead?

The downside? Fakys for breakout pending orders and stops.

Just use what works best for you. I prefer candlestick as it give me plenty of info I need. Keep in mind that you need to figure out a strategy with the tools so it will be successful in your case, that’s all that really matters.

Hey!

Yeah, I agree with Bear. You have to find YOUR way.
See, lot’s of traders use the candlesticks for the underlining reason of price action. Cause and effect.
But if your thing is predominantly strength/weakness then I would say the line charts are good for that.
Because what your seeing is the close of every time period (1hr, 4hr, daily etc…). You wouldn’t be seeing what happens in-between. And in the market, the shorter time frames you use, you will see a lot of back and forth happening. Between contrarian traders, robots, and the institutions that do the luring game, your gonna have that. But as the higher you go with the time frames your gonna get more of an accurate gauge of the real strength/weakness going on.
And you need to realize the fact that you need to put strength/weakness into perspective. The perspective of your trading time period. Basically how long you plan on holding the trades. Find that out first, then figure out what’s the best time frames to use. With utilizing your bias of strength. And weakness.
Don’t be like me and sometimes get too shortsighted and only want to find who’s strong. Must find who’s weak also. I think that is just as important.

I use both line and candlestick charts. (switch)
If I want to see strength going on in a day (or week), then I look at the line charts.
If I’m looking to get in on a trade, I go to a lower time frame and try to diagnose the candlestick patterns.

Also be aware of the important support and resistance levels, and the effect it has on price.

Just some things to think about.

Most importantly…find YOUR WAY.

Mike

I’m also using candlestick and its good, I like this chart. But I’m still learning how to determine its direction, its still make me wonder where will the market going on…