Ninja Trader wrote:Cobra, I am not proficient in candle pattern recongition as I am in other areas
any stats on an inside day followed by an inside day?
I recall seeing this type of price action in various books but unfortunately my Nison book is home today....
S&P avoided the red close by the skin of its teeth, lots of long lower shadows today on the 5 min candles, real battle going on here
it's not inside day but the black bar does look like a top of some kind is forming.
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Nice charts. My guess is that you are using log-scale graphs, which IMO defeats the purpose of using linear trends lines because those trend lines aren't also interpreted in log-scale. I struggled with this myself debating which type of graphs to use - I stick to non-log but would be interested to hear if anyone else sees any issue with this (log vs non-log)?
My basic point is that turning off log-scale would change the graph enough so those lines would not longer show the same touches, etc. Either way, thanks for sharing your charts!
you should always use log scale charts on anything you are charting over two years, I would never suggest an arithmetic chart for a period that long or longer. I have a fairly expansive library of technical texts, all of them state this fact. Further, they give earlier signals when it comes to trendlines, try it and you'll see for yourself. Not to mention, all important financial measures are quoted in percentages.
@cobra, 4:10
thanks, my eyes must have been fuzzy, at first glance it looked like an inside candle to me, I see now it is not
you should always use log scale charts on anything you are charting over two years, I would never suggest an arithmetic chart for a period that long or longer. I have a fairly expansive library of technical texts, all of them state this fact. Further, they give earlier signals when it comes to trendlines, try it and you'll see for yourself. Not to mention, all important financial measures are quoted in percentages.
Thanks Ninja Trader!While it didn't make sense to me at first, I now agree with you. I realize now it is better for my trend lines to track % trends (e.g. 1% up every day) rather than $ trends (e.g. $1 up every day). I appreciate your input.