They inform you nothing as regards the strength of a move. Volume is everything, move along the volume: a blind spot exist in a traditional candlestick.When you see a big green candle breaking out on a traditional chart, the equivalent on a raindrop chart is a small wick. Locate breakouts and Fake-out: raindrops has the capability of revealing to you if there exist a volume behind a move or not.It is a new type of price chart that combines price and volume. The breadth of each side forms the amount of trading volume that took place at each price mark. The second half (right part) makes up the second half of the market. The first half (left part) of each raindrop makes up the first half of the market period. Instead, their formation happens from a high, low, left VWAP and right VWAP. This allows you to view the way market emotion changes by placing the two halves of the period histogram side by side and making a comparison.Īs opposed to the typical candlesticks, raindrops do not have an open or close price. It has experience tilting at a 90-degree angle. Individual half is basically a small volume at price or volume profile chart. The left part of a raindrop forms the first half of the period and the second half of the period forms the right side. Raindrops form by using similar market data as Japanese candlesticks but add volume into the final image, presenting to you the behavior of price and volume over time. They enable you to see how the market is doing from a unique angle. Raindrop candle charts are a recent form of a financial chart.
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