I’m in the middle school atm so I’ve been studying chart paterns and indicators. While testing these on some charts in order to figure out how they work or simply to see if I can recognize some of these patterns, I’ve noticed that some of them disappear / tend to stretch by keeping the same time frame and exting the period
Eg: on a 1h chart I can spot a double top if I look at the last 2 days, but if I keep the 1h chart and look at the past week, that pattern almost disappears.
Is this how it is supposed to work ? Or there is some setting I need to enable in order to stop recognizing patterns that actually dont exist ?
Do you mean “because the bars are much closer together because there are a whole week’s bars compressed into your screen”? (I’m not sure why else the pattern would disappear, if they’re both H1 charts?).
Excuse me if I’ve totally misunderstood your question … :8:
(Maybe you could post a couple of charts, to show us what the problem is??? Either that, or await better replies from other members!?).
If you mean that you are compressing the visible range of data then this sounds normal to me. In fact, sometimes the opposite can occur, that patterns appear when compressed that were not so readily noticeable with bars more spread out.
Screenshot - 128b84981641ba53d0f46112a4dcbf45 - Gyazo - anyway, if I zoom out, the trend is steeper. How do I know if that is an uptrend indeed and what it’s angle ? (LE: need to use indicators ? ) Should I trust the first one or the 2nd one ? Also, the h&s on the left is more visible in the 2nd one.
This is a kind of artifact/illusion caused by the fact the last 15-20% of the bars shown on the right of the second chart occupy about 5 times as much price-swing as the rest of the chart, so the scale of price (shown on the right) has had to expand rapidly to accommodate that, and its effect is that it’s relatively compressed the first 80%-ish of the chart, making it appear as if it’s ranging (pretty much) [I]by comparison[/I] when in reality it was a bit range-ish but not nearly so much as it appears.
Something to watch out for, when the length of price-bars/candles very suddenly increases hugely, as it can around the times of news announcements, for example, or for other “fundamental” reasons.
Well by looking at those charts I would more call that area you are highlighting a ranging market but t does have some top side movement so I guess some would call that an uptrend. To know if it is an uptrend you must first decided what is an uptrend to you. How long does price need to remain in the current overall direction, how many higher highs and higher lows need to be formed. Some people use moving averages to verify a trend such as the 50 or 200 moving averages. Keep in mind you dont really need an indicator to spot a trend just use your eyes what direction is price trending in?. Sure it will go up and down but if the overall direction in up then you have an uptrend. Also keep in mind that price charts in of themselves are nothing more than an lagging indicator. I might get shunned for saying that but it really is you are using past price to predict future price direction and what does a indicator do?