可能 24, 2013
發表者: 外匯維基團隊
類別: 外匯交易系統

Understanding the chart

This is an article I wrote some time ago:

這圖表 is a set of data containing information about 價格行為 presented in a certain graphic form, A 視覺的 形式. The chart is the history of price action written in a specific picture alphabet – Candle alphabet, Bar alphabet 或者 Linear alphabet. 數據 containing information about price levels is sent by the broker’s server in information packs called 蜱蟲, and drawn by a computer programme as an element of the chart. 這 linear chart contains the least information about price action, because it is presented as a linear set of averaged price levels starting at the 打開 value and ending at the 關閉 value of a given period of time (大體時間).

Price Action in Day Trading By Dadas (Part 2) 1

Pic. 01 Linear chart. Open and Close levels of a given period of time (大體時間).

這 linear chart shows the 趨勢 pretty well, 然而, it does not show any other information, 尤其, we can 不是 see the 高的和低的 price levels in the given 大體時間, 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 平均的 run of the price 從這打開價格, 到這關閉價格.

這 Bar chart and the 蠟燭 chart contain the 滿的 information 關於 OHLC 等級.

Price Action in Day Trading By Dadas (Part 2) 2

Pic. 02 Bar chart with OHLC levels

Price Action in Day Trading By Dadas (Part 2) 3

Pic. 03 Candle chart with OHLC levels

這 Candle chart provides a much more visualy 清除 picture of price action in a given Timeframe. As we can clearly see, A 蠟燭 consists of three areas: the candle body (from Open to 關閉), the upper shadow, the lower shadow. From the structure of the candle, we read the 打開 price level, 這高的 price level, 這低的 price level and the 關閉 price level. 換句話說, 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, 那:
Ø At such and such hour, the price tested a higher level, but found some 反抗 (高的) and began falling (upper shadow).
Ø The price fell down to a certain level and found some 支持 (低的), and there it stopped falling further.
Ø The price turned back upwards somewhat and Closed at a lower level than the previous 蠟燭 (lower shadow).
Ø 因此, the trend in this period of time was Bearish.
In the exact same way, we can read 每個蠟燭, on every or any 大體時間 圖表.
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, 現在, 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 低的等級, 和 Closed lower than the preceding Candle, thus confirming the Bearish 趨勢.
Ø In the hour after that, the price still dropped, created a new 低的等級, 和 Closed lower than the preceding Candle. 然而, we notice that the bodies of the last two Candles are much shorter than the body of the Candle we started with, 所以, 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. 因此, 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, 明顯地, consolidating.

Let us take a look, again, at the Candle we startet out with.
這高的 price level is the 反抗 level for that hour – isn’t it?
這低的 price level is the 支持 level for that hour – isn’t it?
因此, what are the shadow areas of Candles, 如果不 Resistance and Support 區域 for the given period of time?

Price Action in Day Trading By Dadas (Part 2) 4

Pic. 04 Resistance and Support zones of a Candle

Following this trail, Resistance and Support 區域 for a given Candle are nothing other than 價格 Consolidation Zones (equilibrium or balance of Buyers 和 Sellers) in a smaller period of time. There were still Buyers at the 打開價格, so the price went 向上. There were no more Buyers at the 高的價格, 和 Sellers took over, so the price went 向下. There were no more Sellers at the 低的價格, and the price started to go up again. The price went up until the 關閉等級, 在哪裡, 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, 這裡!

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.

免責聲明:

All of my indicator-tools have been designed in order to assist the Forex Trader in the process of learning Price Action and
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.
與任何工具一樣, 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!
和, as with any other tool, it can be missused, as well.
It is the investor/trader who makes the final decisions and judges or diagnoses the potential,
and it is the investor who is the amateur, the proffesional skilled craftsman, or the artist!
Just like the manufacturers of the simple hammer can not take responsibility for the effects or damages
arrising from using their simple tool, the creator of the tools presented herein can not take any responsibility,
whatsoever, for the effects or damages arrising directly or indirectly from using theForex Trade Supporting tools.
Loss or Profit in Forex Trading is the sole responsibility and sole risk of the investor/trader, and has nothing to do,
whatsoever, with any available tool, indicator or other computer programme.
There are a number of different factors, other than the tools themselves, which lead to success or failure in any trade,
including Forex Trading. It is extremely important to understand, that it is the investor’s ability to make the right decisions
at the right moments which lead to success, and the tools, no matter how 極好的, are only the Supportive Aid,
and not the decisive factor.

It is strongly advisable to thoroughly learn Price Action in Day Trading by Dadas as explained in this thread,
before applying the tools to your charts and trying to use the concept.

Attached, some helping tools.

附加的文件