Thanks for your reply.
I don't quite see the "therefore", myself. Greed and fear are everyday market drivers, I think.
It seems to me that the tips of the wicks (the high and low) are objective and simply "where the market reached before reversing", i.e. they indicate support and/or resistance, which means something.
The length of the wicks depends, clearly, on their distance from the open and close, which seem to me, for the reasons explained in my post above, to be more or less arbitrary by comparison.
Granted, things like this can happen, but these are occasional exceptions you're talking about here, surely? :|
Well, if it does, it does; but this, of course, makes it very much more difficult for people to discuss it with you. 😱
I don't believe in any of those.
Fair enough. I'm rather more interested in the underlying theory and the ways in which market sentiment and human behaviour are translated into significantly repeating price action patterns. (I thought - evidently wrongly - that this was the kind of discussion your thread invited.) Which, again, makes it difficult to discuss, perhaps, from our very different perspectives.
But no more so than OHLC-bar charts, surely? Bar charts give exactly the same information, after all, but with more visual emphasis on the highs and lows?
I am going to try and answer using the quotes like you done, it looks far better, but I messed it up last time I tried it so apologies in advance if I do that again
🙂
Firstly let me say, I do not disagree with most of what you have said, I do not profess to be right, I just offered my opinion to get the ball rolling.
It seems to me that the tips of the wicks (the high and low) are objective and simply "where the market reached before reversing", i.e. they indicate support and/or resistance, which means something.
I agree, I would generally use the wicks as my stops actually, but not base my analysis around them. I base that on the closes.
Granted, things like this can happen, but these are occasional exceptions you're talking about here, surely? :|
News event, yes. However there are other times such as (I believe) when banks need liquidity, they will spike the price to hit stops to get the buyers they need to sell (and vice v) which I believe happens pretty often, so the wick in this case is manufactured to meet a ends.
Well, if it does, it does; but this, of course, makes it very much more difficult for people to discuss it with you. 😱
Again, I do not profess to be right
🙂 My thoughts are just matched with my experiences.
I don't believe in any of those.
Many don't. I know a lot of people say they work well only in hindsight, but I have found them to be very useful.
I have attached a picture (well I have not actually done it yet, but by the time you read this, I have
😀 ) which shows if you shorted UJ on the bearish engulfing candle on Thursday and used the extensions as targets, price respected them well - I know this may look like a perfect example, but I never poured over tons of charts and time frames to find this, was just what my MT4 was open on - this happens very often. Zoomed in you see while the wicks violate these levels, the closes usually respect them.
The sell signal seems to come right off the 61% retrace as well (just from looking, never drew a fib, so may be wrong)
Fair enough. I'm rather more interested in the underlying theory and the ways in which market sentiment and human behaviour are translated into significantly repeating price action patterns. (I thought - evidently wrongly - that this was the kind of discussion your thread invited.) Which, again, makes it difficult to discuss, perhaps, from our very different perspectives.
Theory interests me greatly, just not when I am actually trading.
Another example would be, I love economics but I do not use them when making trades, I trade techs.
The intention of this thread was for people to discuss (hopefully pleasantly - I have noticed a lot of people tend to be rude about here, not referring to you Alexa, you seem very pleasant) their different opinions.
While it will be unlikely to change my trading style, objectivity is always educational and thought provoking.
