Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

cmach123

What Does This Mean?

Recommended Posts

I have pretty good understanding in regards to reading a candlestick/bar chart, and what to expect. But when a horizontal line (blue arrows pointing) appears, I have no idea what to expect. Can anyone explain what this means? Is it no demand bar, or no supply bar?

chart.thumb.jpg.fe58083c093e781732af59a40f57eca3.jpg

Share this post


Link to post
Share on other sites
I have pretty good understanding in regards to reading a candlestick/bar chart, and what to expect. But when a horizontal line (blue arrows pointing) appears, I have no idea what to expect. Can anyone explain what this means? Is it no demand bar, or no supply bar?

 

You probably should reread the defintion of a no supply and no demand bar then you'd be able to answer your question yourself if they are no supply/demand or neither.

 

How relevant they are and what they means, depends on the background/context. Don't try to explain and make decisions based on single bars without taking background into consideration. Without considering background, you are looking at "random" bars.

 

What to expect is that price will move either up or down or continue sideways. It's up to you to manage it.

Share this post


Link to post
Share on other sites

Basically, that type of bar means : Open=High=Low=Close. The spread, or range, of the bar is zero.

 

These usually appear with little volume. This makes sense as volume is activity and there is a relationship between volume (activity) and range.

 

As far as being no demands or no supply, it gets a little hazy.

 

If the volume is less than the previous two bars on such a narrow spread and closing up, then you have the base definition of No Demand. This is the definition that is in the MTM book. Unfortunately people were simply trying to short on any No Demand. Tom then had to "change" the definition to stress the idea of background weakness (or strength in the case of no supply). Hence, many now would say they are just low volume up bars showing little professional activity in the market. Considering that 80-90% of the volume "figure" is professional money.

 

Tom and Todd used to talk about "a polar bear" in Hawaii, when a no demand showed up in the wrong place. Like when there is not weakness in the background. They used that term because the bar met the base definition (book) of no demand. What people seemed not to grasp was that all up bars on a narrow range with volume less than the previous two bars are no demand, but not all no demand bars are tradable.

 

As you are just starting out, you should put the bars into context. If there are no signs of weakness behind you, then look at the bars as simply low volume up bars showing little professional activity. If there are signs of weakness (like high volume up bars closing off the high with the next bar down) then look at the bars as no demand. Which still means there is little professional interest in upside prices, but now you have the background context for a tradable bar.

 

Sorry for the lengthy answer but this is a pet peeve of mine. In order to appease critics and traders that did not understand the idea of context and for software purposes the definition was "changed".

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • @sxiqxx, Well done on making your first post a promising strategy. @everyone, post up if you want this coded into an EA. Although I switched to TradeStation, I still have an active MT5 demo with MetaEditor. I can code it without referencing object oriented programming which should be retroactively compatible with MT4. Let me know...
    • Please allow me to retort (in jest): RESPONSE 1 : Get a job supervising others where you're in control of performance reports and ride those others 100%. This makes your performance 100% with little to no effort.   RESPONSE 2: Feel free to piss off your boss but stay nonviolent. When the side effects of his viagra and testosterone boosters cause him to physically assault you, you have the legal upper hand. This can result in a boatload of trading capital.   RESPONSE 3: Feel free to have intimate relations with your boss if she finds you attractive. Rest assured that mum's the word because once again, you have the legal upper hand. This can also result in a boatload of trading capital.   RESPONSE 4: Don't be fake friends with any enemies... unless you need information from them. Being fake friends with everyone will cause you to become an empty shell of a person with no direction in life.   REPONSE 5: Get your boss to become reliant on your performance (really, just the performance of your subordinates), and then plan an "overheard" conversation wherein you fake an interview with another potential employer. You'll probably get a pay increase or a promotion.   RESPONSE 6: If you can give your 75% percent to a project, give 50% and rely on your legal upper hand(s). Learn to write trading algo's during your other 50%.   RESPONSE 7: Take all of the office boys out to nightclub where you merely sip soft drinks on a weeknight. Upon your return to the office in the morning, inform the security guards that all of the office boys are intoxicated. Your boss will love you for it.   RESPONSE 8: Never try to prove your client wrong or find faults in their processes, but do secretly collect their information in case you jump ship or "someone you know" decides to start his own company.   RESPONSE 9: Never stay in a firm for too long. Instead, use your ill-gotten capital to exit the rat-race and start trading.   RESPONSE 10: Trading pays more than your career. Interpersonal skills are now irrelevant. Use your technical skills for trading. Never stop learning and keep updating your technical skills.😁
    • There are a lot of trading strategies like elliot waves, wyckoff etc so we need to apply those who best suited to our need and are understandable too.
    • Scalping can be good during the high volatile markets however the new traders should be careful while entering and exiting the markets too quickly since they can make losses as well. If the broker support news trading we can make most out of the scalping in my opinion.  
    • In my opinion these candlestick charts are more easier to understand as compared with the other charts.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.