Alright, you people in law enforcement, just chill out!
I mean these kind of lines:
This is a beautiful shot of the EUR/AUS 15 minute chart. It would be a lot nicer if I didn’t have my horizontal position lines plastered all over it. I took it long during the London breakout. As a swing trader, this is my ideal pair. The trends just seem to go forever. That’s a really good thing. And the biggest bonus is that it has an daily ATR (30) of over 88 pips. That means you stand to make an average of 88 per day trading this pair. Wow! In today’s market that is phenomenal!
The lime green line is the price and the turquoise line is the EMA 20. There are some good reasons to use line charts:
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Although you can’t see the points between lines, they are based on the close of each fifteen minute period. This way, you don’t have to worry about overshoots.
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Since there are no wicks (tails) to worry about, it smooths the PA out a bit, making it easier to draw patterns.
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You can see the swing points better (HL’s and LH’s).
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You can see the reversals better, like that little V-reversal pattern (LL trend reversal) in the chart above.
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In a counter trend scenario like the one above, you can see whether the gaps between the previous LL’s and current HH’s are actually closing (where price is right now on the chart above). This is extremely important in determining if the current uptrend will continue.
Of course, I’m always checking back to see if there is an odd candle poking above or below where it’s not supposed to. But if you feel you are missing something in your trading, and you want better overall direction, try doing some lines with me… We’ll just have to be careful not to get busted!