Whilst a lot of traders use candlestick charts, there does seem to be quite a lot of backlash lately towards time-based charts. This is of course quite logical, at first, because , really, why should a daily chart have any more significance than a 23H chart? a H1 chart over a 55M chart?
When using candlesticks, there is no doubt about it, you are slicing time into neat little intervals, say the naysayers, whilst volume-based or trend based bars 'smooth out noise'.
I can see the logic in this argument. The problem is, literally every single broker or charting software starts off with W1 D1 H4 H1 30M 15M 5M, like every time. I get the feeling that there are a hell of a lot more traders looking at where a daily or weekly candlestick closes than a 23hr chart close. In my opinion, then, candlesticks and time-based charts are from quite a basic view, irrelevant, but on the other hand, so many traders use them, and the vast majority of traders using candlesticks seem to focus on a few timeframes.
Not to say that volume or tick bars have no relevance, I think they are brilliant too.
What do you guys think?
:)
When using candlesticks, there is no doubt about it, you are slicing time into neat little intervals, say the naysayers, whilst volume-based or trend based bars 'smooth out noise'.
I can see the logic in this argument. The problem is, literally every single broker or charting software starts off with W1 D1 H4 H1 30M 15M 5M, like every time. I get the feeling that there are a hell of a lot more traders looking at where a daily or weekly candlestick closes than a 23hr chart close. In my opinion, then, candlesticks and time-based charts are from quite a basic view, irrelevant, but on the other hand, so many traders use them, and the vast majority of traders using candlesticks seem to focus on a few timeframes.
Not to say that volume or tick bars have no relevance, I think they are brilliant too.
What do you guys think?
:)
'Candlesticks are useless and arbitrary' yeh but no?
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