Trend lines difference between time and range bars ?
I find trend lines to be powerfull tools. Yet, when looking at price range bars (renko/range/..) trend lines do not appear at the same place as time based bars. This is normal.
Personally, I wonder if range/renko/.. are not getting more and more interesting with the stronger influence of computers that don't care waiting (time based bars require less attention than range/renko because you know when they will close, and this makes it easier for a human).
You may notice this will also have incidence on fibs fans etc...
Which ones do you prefer ? Time ? Price ? Both ? No difference, just have to chose one of them and stick to it ?
Here is an example of a channel top reached on the renko chart, but not on the 60 mn chart.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).
-- The rest is silence
The following user says Thank You to wwwingman for this post:
In my opinion time based charts often display a lot of unnecessary noise.
I use to use time based bar types mostly because that's all my platform supported. (fortunately now im using NT and have moved away from time based bars). However the whole time I was using minute charts I was unhappy with it because I felt the concept of printing a new bar simply because x number of minutes had passed didn't make sense. The market could be extremely quiet, or extremely active and either way im getting a new bar after x minutes.
This is part of what causes the differences in trendlines I think. Trendlines on time based charts are taking two factors into account: time + market movement. Whereas trendlines on volume or tick charts focus on the market movement.
When a market is active and moving, I want to be given a lot of information. When the market is quiet, I dont want bars to be printed just because x minutes has passed.
You donít trade the markets; you only trade your beliefs about the markets.
- Van K Tharp
The following user says Thank You to DarkPoolTrading for this post:
Yes I too like trendlines on non time based charts - in particular BetterRenko.
Too much noise on time charts - especially in the middle of the US night when I have to trade.
I follow Mack from Price Action Trading Systems, but actually find I get enough 'pull backs to the trendline' entries off a BR chart without having to worry about all the other setups of his (eg 2nd entries).
The following user says Thank You to steve2222 for this post: