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Chapter 7, Part I. Chart types. - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by AsstModerator, May 12, 2011.

  1. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

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    I'll save a few questions by anticipating the most obvious ones.

    Q. Is there really only 1 part in Chapter 7?

    A. Yes.

    Q. Why

    A. Because that's how it was written. ;)
     
  2. Pierre le Roux

    Pierre le Roux Recruit

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    Chapter 7 chart types

    Are there any advantages in using Hokan Ashi candles?
     
  3. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Pierre,
    There is an opinion that due the adjustment algorithm of Hokan Ashi candles, they allow you clearer see trends and reversal points. And mostly Hokan Ashi candles use on Commodity and Equity markets. But I think that there is no problem to use it on Forex.

    Personally, I have not experimented with them and can't say deifinitely how great its advantage above standard candlesticks chart.

    I have some suspicion that may be sometimes they allow to get some advantage, but this advantage is not so significant. This is almost like using Kagi and Renko charts. Do they have some advantage? May be. But also some disadvantages.
    So as with Hokan Ashi candles. I think that this is just a bit another attempt to tune classic charts. You may try them, if they will be work for you - use it. Besides, it could be done very simple with MS Excell sheets, if you do not have software that shows this type of chart.

    But then will appear another problem. IF you follow some strategy, say, Elliot wave or classical way of technical analysis ( I use DiNapoli approach) - anything. Here will be a question, how your trading style will work with Hakin Ashi charts, because these trading methods were based on standard charts...
     
  4. Amanda_pips

    Amanda_pips Recruit

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    Exist some advantage to use line chart against candlestick?
     
  5. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Amanda,
    yes it does. Mostly when you try to estimate support/resistance levels. Since line charts are based on close price, it has less amount of spikes and fakes. So, using line chart makes identification of support/resistance zones simplier sometimes.
     
  6. think2

    think2 Private, 1st Class

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    Just to remind you, that the last statement is written twice (so you can delete it):

    Ok, just one thing, that I want to add about candlestick charts. They have some solid advantages:

    1. They are easy to interpret, because they larger and different colors can help much with it. You just take a look at the chart and understand what is going on;

    2. Candlestick patterns easier to see, because candles are bigger than bars.

    In spite of this, many professional traders prefer bars. In fact, this is a question of trading strategy and habits. It’s obvious that if your strategy involves candlestick patterns – you will use candlestick charts. Anyway, understanding of bars and candles is very desirable.
     
  7. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

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    Regarding the conclusion being written twice, I've fixed it.

    Regarding the conclusion being written twice, I've fixed it. :)
     
  8. wendyyyy

    wendyyyy Recruit

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    what is the most popular charting software?
     
  9. Pharaoh

    Pharaoh Colonel

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    For retail forex, it's currently MetaTrader.
     
  10. Hamza Samiullah

    Hamza Samiullah Private, 1st Class

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    amazing article..
     

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