Should you ignore candlestick shadows when drawing trend lines?

[JRC]

Should you ignore candlestick shadows when drawing trend lines and just connect the period opens/closes? Or are they just as important as the real body?

Is it a good idea to use a line graph (perhaps on a higher time frame) when drawing trend lines, and then to convert to candlesticks once finished?

Thanks

[Jcandle]

Should you ignore candlestick shadows when drawing trend lines and just connect the period opens/closes? Or are they just as important as the real body?

Is it a good idea to use a line graph (perhaps on a higher time frame) when drawing trend lines, and then to convert to candlesticks once finished?

Thanks

This is when trading is more of an Art form than a Science. Whenever you draw your trend line try to remember that the market is the one that validates a trend line not the fact that you are connecting two or more points. With that said i like to draw trend lines on higher time frames from their open and closes and usually once i zoom in to the lower time frames the candlestick shadows or wicks are incorporated into a higher commanding time frame trend line. When in doubt draw them both and measure the move with Fibonacci relationships and see which trend best matches up. Use your tools and i hope that helps.

[emeraldorc]

You should consider shadows and make sure your line touches at least 3 tops or bottoms this makes valid and more reliable. Two tops and bottoms means a tentative line not so reliable.

Above all don’t force the line to fit if it doesn’t fit, it doesn’t.

[TheLastBear]

This is when trading is more of an Art form than a Science. Whenever you draw your trend line try to remember that the market is the one that validates a trend line not the fact that you are connecting two or more points. With that said i like to draw trend lines on higher time frames from their open and closes and usually once i zoom in to the lower time frames the candlestick shadows or wicks are incorporated into a higher commanding time frame trend line. When in doubt draw them both and measure the move with Fibonacci relationships and see which trend best matches up. Use your tools and i hope that helps.

+1 on that. You should also keep in mind that S/R levels are more of an indicator than a guarantee. I think a lot of newbies make the mistake thinking because price action reaches S/R there is an automatic reversal. In the end it boils down to yoyur strategy and how you have created it.

[Catabolist]

Yeah, I have to echo what I’m seeing above ^ It’s never a perfect line on exact points. Honestly, if you can’t easily see the trend line/trend channel building, other players can’t either. If other players have a very mixed view on the whole thing, then the activity based on that trend won’t be as clear (because you won’t have market participants making decisions based on it)

[Hellion]

This is when trading is more of an Art form than a Science. Whenever you draw your trend line try to remember that the market is the one that validates a trend line not the fact that you are connecting two or more points. With that said i like to draw trend lines on higher time frames from their open and closes and usually once i zoom in to the lower time frames the candlestick shadows or wicks are incorporated into a higher commanding time frame trend line. When in doubt draw them both and measure the move with Fibonacci relationships and see which trend best matches up. Use your tools and i hope that helps.

Very informative post. I’ve copied it to my notes, red lettered, and have it highlighted.
Thank you

[MoneyNVRSleeps]

Look at S/R lines as zones… Your Zones should have a buffer as large as the average size of your Wics that you can see on your chart…

[GRIX_FX]

This is when trading is more of an Art form than a Science. Whenever you draw your trend line try to remember that the market is the one that validates a trend line not the fact that you are connecting two or more points. With that said i like to draw trend lines on higher time frames from their open and closes and usually once i zoom in to the lower time frames the candlestick shadows or wicks are incorporated into a higher commanding time frame trend line. When in doubt draw them both and measure the move with Fibonacci relationships and see which trend best matches up. Use your tools and i hope that helps.

well said j