These areas are where the big boys decide to buy or sell. Supply and demand, yin and yang, whatever way you want to say it.
Think of LR as a trend channel - above it "overbought" and below it "oversell". As dchappy has mentioned you can pair it with other oscillators (eg. semafor, cci) to confirm the signal.
HA and range bar are just one way to look at the market. You can certainly use normal chart based on time for your own trading.
Lis
NINJA PLATFORM
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- Patch
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Airball
No I am not using NJ. I've been trying to find out if any MT4 brokers support the doom. Wrote tech a note, and didn't hear back. Patch
No I am not using NJ. I've been trying to find out if any MT4 brokers support the doom. Wrote tech a note, and didn't hear back. Patch
ENOUGH being a Yalie for me Back to the Sea. "What i can lose, i can win" "YES YOU CAN" - dragon33 -"Pick one method and one pair and stick with them until you master it. "The choice is yours - success or failure." TRO
Hi Patriot : Price action is simply watching the movement of Price to find a tradable opportunity . For instance , this chart looks like a drunken sailor ,up , down , back & forth ,could anyone hope to make a dime trading this mess ?
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Now if we only had a way for price to tell us when those exhaustion areas are completely exhausted . Haekin ashi bars tell us if there is buying or selling pressure ( a change in direction ...or.."new energy " )
Hope this helps .......Chappy
Hope this helps .......Chappy
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- monolisa
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My understanding is that range bar take the time element out of the equation, and put all attention on price range. In trading momentum is important and price range gives you some indication of momentum. For example, if price goes up 50 pips on a 5 mins GBPUSD chart that's strong momentum.
However, one need to consider the open/close of a candle, not just the high/low. If you see a range candle with tiny body there's not much momentum there (hint: supply and demand). Heiken Ashi indicator takes care of the relationship between these 4 factors - high/low/open/close (look up Heiken Ashi on Google and see how it is calculated).
So dchappy's method presents momentum in a unique way . Combining it with an oscillator indicator (in dchappy' case linear regression and Woodie CCI, or in MT4 TRO's semafor) which tells you the overbought and oversold areas the chance of winning increases.
Momentum indicates activity and oscillator shows you the "right" way.
Lis
However, one need to consider the open/close of a candle, not just the high/low. If you see a range candle with tiny body there's not much momentum there (hint: supply and demand). Heiken Ashi indicator takes care of the relationship between these 4 factors - high/low/open/close (look up Heiken Ashi on Google and see how it is calculated).
So dchappy's method presents momentum in a unique way . Combining it with an oscillator indicator (in dchappy' case linear regression and Woodie CCI, or in MT4 TRO's semafor) which tells you the overbought and oversold areas the chance of winning increases.
Momentum indicates activity and oscillator shows you the "right" way.
Lis
"Know your enemy and know yourself, find naught in fear for 100 battles. Know yourself but not your enemy, find level of loss and victory. Know neither your enemy or yourself, wallow in defeat every time." - Sun Tzu
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