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Why 4hr time frame should be avoided?
@PAVLeader @RajarshitaS @Abhishekkar_ @sanstocktrader
There is a practice of using 4 hr TF charts for stocks/index. This is completely wrong and unknowingly those who are the exponents of this misleading new TA practitioners
thread 1/10
@PAVLeader @RajarshitaS @Abhishekkar_ @sanstocktrader
There is a practice of using 4 hr TF charts for stocks/index. This is completely wrong and unknowingly those who are the exponents of this misleading new TA practitioners
thread 1/10
thread 2/10
. In charts abv, when it is kept in 4 hr TF, now the first candle of the day contains 4 hrs price action while the EVERY SECOND CANDLE TAKES ONLY 2 HOUR 15 MINUTES (!!!!!) OF PRICE ACTION as that is the time remaining in the day before mkt closes.
. In charts abv, when it is kept in 4 hr TF, now the first candle of the day contains 4 hrs price action while the EVERY SECOND CANDLE TAKES ONLY 2 HOUR 15 MINUTES (!!!!!) OF PRICE ACTION as that is the time remaining in the day before mkt closes.
thread 3/10
Candle doesn’t take price from the next day to fill the price action to complete 4hr. instead , by default, all candles has to be “intraday” candles as long as the time frame is kept below daily.
Candle doesn’t take price from the next day to fill the price action to complete 4hr. instead , by default, all candles has to be “intraday” candles as long as the time frame is kept below daily.
thread 4/10
So where do we use it?? This is DESIGNED FOR FOREX MARKET it where is runs 24 hrs. if we cut the time frame into 4 hrs, now inside a day, all candles are equally contains 6 candles where each has exactly 4 hrs price action.
So where do we use it?? This is DESIGNED FOR FOREX MARKET it where is runs 24 hrs. if we cut the time frame into 4 hrs, now inside a day, all candles are equally contains 6 candles where each has exactly 4 hrs price action.
thread 5/10
Why exactly, it shouldn’t be used elsewhere? Suppose 200 sma is plotted on the chart. Now this sma averages last 200 periods price action assuming all candles contains 4hrs of price; where only 100 candles contains it while rest of the 100 candles has only 2.15 hrs.
Why exactly, it shouldn’t be used elsewhere? Suppose 200 sma is plotted on the chart. Now this sma averages last 200 periods price action assuming all candles contains 4hrs of price; where only 100 candles contains it while rest of the 100 candles has only 2.15 hrs.
thread 6/10
Suppose RSI(14) is plotted below chart. Its supposed to calculate gain/loss of each of last 14 periods and average it. Again, only half of the candles has the actual price of 4 hrs, rest have different price.
Suppose RSI(14) is plotted below chart. Its supposed to calculate gain/loss of each of last 14 periods and average it. Again, only half of the candles has the actual price of 4 hrs, rest have different price.
thread 7/10
HOW DO A CHARTIST TRUST HIS ANALYSIS IS RIGHT WHICH ARE BASED COMPLETELY WRONG INFORMATION??
HOW DO A CHARTIST TRUST HIS ANALYSIS IS RIGHT WHICH ARE BASED COMPLETELY WRONG INFORMATION??
thread 8/10
Even the stalwarts are seen using it this way. While they might be knowing it and compensate for this discrepancy some how (??) through their expertise( or may be using a charting platform which allows cutting the intraday candles across EOD time frame), ........
Even the stalwarts are seen using it this way. While they might be knowing it and compensate for this discrepancy some how (??) through their expertise( or may be using a charting platform which allows cutting the intraday candles across EOD time frame), ........
thread 9/10
.............those who are new into charting will be misled horribly. Charting is actually simple if and only if the basics are kept right. I request, the senior expert chartists to look into this and correct me if am wrong. That would be helpful to all
.............those who are new into charting will be misled horribly. Charting is actually simple if and only if the basics are kept right. I request, the senior expert chartists to look into this and correct me if am wrong. That would be helpful to all
thread 10/10
intention of the thread isnt to hurt anyones' ego/sentiments. if it does, it isnt what the twet meant for. readers ar requested to use own discretion to accept/reject the info in the tweet. no commercial interests are hidden in it. pls RT if its worth doing so
intention of the thread isnt to hurt anyones' ego/sentiments. if it does, it isnt what the twet meant for. readers ar requested to use own discretion to accept/reject the info in the tweet. no commercial interests are hidden in it. pls RT if its worth doing so
