- Mungkin 24, 2013
- Dihantar oleh: Pasukan Wiki Forex
- kategori: Sistem Dagangan Forex
Understanding the chart
This is an article I wrote some time ago:
The carta is a set of data containing information about tindakan harga presented in a certain graphic form, a visual form. The chart is the history of price action written in a specific picture alphabet – Candle alphabet, Bar alphabet atau Linear alphabet. Data containing information about price levels is sent by the broker’s server in information packs called ticks, and drawn by a computer programme as an element of the chart. The linear chart contains the least information about price action, because it is presented as a linear set of averaged price levels starting at the Buka value and ending at the tutup value of a given period of time (Tempoh masa).
The linear chart shows the trend pretty well, walau bagaimanapun, it does not show any other information, terutamanya, we can bukan see the tinggi dan rendah price levels in the given Tempoh masa, and it is difficult to recognize the beginning and end of each time period, thus, we cannot see the price action in this period of time. We can only see the purata run of the price daripada yang Buka price, kepada yang tutup price.
The Bar chart and the Candle chart contain the penuh information about OHLC peringkat.
The Candle chart provides a much more visualy jelas gambar of price action in a given Timeframe. As we can clearly see, a Candle consists of three areas: the candle body (from Open to tutup), the upper shadow, the lower shadow. From the structure of the candle, we read the Buka price level, yang tinggi price level, yang rendah price level and the tutup price level. Dalam kata lain, we can see what the price was doing in the given Timeframe. We do not need to read the actual OHLC values, it is enough that we can see, itu:
Ø At such and such hour, the price tested a higher level, but found some Rintangan (tinggi) and began falling (upper shadow).
Ø The price fell down to a certain level and found some Sokongan (rendah), and there it stopped falling further.
Ø The price turned back upwards somewhat and Closed at a lower level than the previous Candle (lower shadow).
Ø Justeru, the trend in this period of time was Bearish.
In the exact same way, we can membaca setiap satu Candle, on every or any Tempoh masa carta.
Reading each Candle, one by one, we get the whole story, the history of the price. We see the price action. We are able to read the chart. All other indicators, suddenly, become useless, because we can read the chart itself, and we can see it all. Indicators which, in theory, are supposed to show trend, take their data directly from the charts, not from another source. Since we can, now, see it for ourselves on the chart, what do we need any indicators for?
Ø In the following hour, the price dropped some more, created a new rendah tahap, dan Closed lower than the preceding Candle, thus confirming the Bearish trend.
Ø In the hour after that, the price still dropped, created a new rendah tahap, dan Closed lower than the preceding Candle. Namun begitu, we notice that the bodies of the last two Candles are much shorter than the body of the Candle we started with, jadi, obviously the trend is weaker, though still there.
Ø In the still next hour, the body of the Candle is even shorter and we can see the upper and lower shadows. Justeru, the price tested a lower level, found Support, tested a higher level, found Resistance, Closed lower than the preceding Candle, so the trend is still Bearish, but the price is, obviously, consolidating.
Let us take a look, again, at the Candle we startet out with.
The tinggi price level is the Rintangan level for that hour – isn’t it?
The rendah price level is the Sokongan level for that hour – isn’t it?
Justeru, what are the shadow areas of Candles, if not Resistance and Support Zon for the given period of time?
Following this trail, Resistance and Support Zon for a given Candle are nothing other than harga Consolidation Zones (equilibrium or balance of Buyers dan Sellers) in a smaller period of time. There were still Buyers at the Buka price, so the price went up. There were no more Buyers at the tinggi price, dan Sellers took over, so the price went turun. There were no more Sellers at the rendah price, and the price started to go up again. The price went up until the tutup tahap, di mana, again, the Sellers took over. With the help of a simple MT4 tool, the rectangle, we can draw such Zones, and we see even more clearly what is going on, di sini!
We cannot see that on the linear chart. We can, on the Bar chart, but not as clearly.
Continuation in next post due to picture limitation per post.
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the Supply/Demand Trading concept on demo accounts.
Any other usage of these indicator-tools is solely at the risk and responsibility of the individual Trader.
As with any tool, the proper usage depends on proper training and experience.
Any tool can be used in the occasional amateur style, the proffesional skilled craftsmen style, or the artists style!
Dan, as with any other tool, it can be missused, juga.
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It is strongly advisable to thoroughly learn Price Action in Day Trading by Dadas as explained in this thread,
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Attached, some helping tools.