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Old 04-08-2008, 11:34 PM
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Re: Why Candlestick Anaylsis is Different and Might Work for You

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Db - care to expand on your use of CVB (Constant Volume Bars, right? - just checking)? I have used them, and still do but I don't think I have found their real potential as yet. I tend to use them in combination, a longer-frame and a shorter-frame, like you could use hourly and 5-min bars/candles (for example) together.

Brownsfan - if this is too far off topic let me know ... I know this is supposed to be about candles and you have a CV candle thread here.
This will be a short answer, so I doubt BF will object.

Fact is I gave them my best shot but just couldn't trade without separate price and volume. I've been trading the interaction too long, and I didn't think it was worth the effort to change the habits of twenty years.

On the other hand, they make a very nice compromise between time bars and P&F. By having a CVB chart, I can plot the whole 24hr period without having a long string of relatively meaningless non-action from the close to the next day's open. Instead I may have at most two bars that cover the entire period, which isn't even enough to throw off a trendline. And lengthy midday drifts are compressed. They are also handy for finding the "volume ranges" that I use to find S&R (I've posted these in my Blog and also uploaded some sector charts yesterday to the ES/YM thread). Since time isn't so much a factor in those charts but rather price range and volume range, I can eliminate the separate volume window.

Guess that wasn't such a short answer after all.

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