BLVN

Hi all,

Bowleven closed its gap at 76.25 yesterday. Looking good for a 95p christmas present

uk.advfn.com/p.php?pid=chartscreenshot&u...OgUfceHUK6gAb9Jf6CBG

Cheers
F4T

Hi F4T, perhaps the lower line could be moved south a little, as you seem to have chopped half the candles for it to fit the gap fill? Support around 75p?

AdeMcG,

no, I use the more common and IMO more accurate closing prices to set trendlines.

F4T

Hi F4T,

If you use the closing prices for your trendlines then why don't you use the closing prices for your gap? Genuine question,not having a go...

I do expect a small bounce here but simply because it's the 38.2% Fib and that's where it *should* bounce on the way down to 61.8% and the main trendline. I have 5 complete waves up to the 91p high so am looking for that trendline at c, 64p to 67p to go long on this:



dl.dropbox.com/u/20815047/BLVNdaily16_11_12.gif

Big bearish RSI divergence at the high would add weight to the above IMHO.

GL.

Hi Jackozy,

the most important price of the day I thikn you will agree is the closing price, not the high or the low or even the open. It is the price where the market settles after auction after much consideration during the open period. The days range can include all sorts of delayed trades and anomolies and indeed I see people here sifting through these to recognise the "true position".

A gap is different. A gap is the void between one days range and the next days range. I take your point though as this can also include anomolies.

I know that most people on these UK bb's use the lows and highs of the candlesticks to draw trendlines but I think you may find that professionals use closing prices for this purpose as these are more meaningful. Call it advanced TA if you like.

Anyway, each to their own. I believe that more volume is traded off closing prices, but I may be wrong. It works for me anyway.

Cheers
F4T

I actually used to trade like that many moons ago. using closing price to plot the trend lines.
Its not as accurate as taking the extremes. Why is it that prices keep going through the trend line???? For trend line trading i would not use this method.
If you go back through all the charts ive posted so far you can see i use the extremes . If you then look at where they have bounced from then you should be able to tell which is more accurate. Most of the time on first attempt it normally holds. Good for trend line trading.

I do understand what your saying about the pros using it like that. Only thing id say is are they really pros??? Or just writers???
Pros rarely share there knowledge hence why i created chartsview. here fellow traders hopefully will share ,
that way we can all learn together.

But if it works for you then Don't change a thing. Very important.

With regards to gaps.
Your method is the window gap method based on candle sticks. pretty good
But theres also the gap fill method which actually takes the closing price as the gap fill area and not the long wick part.This is the method i use to go long or short on in first attempt.
Theres always more than one method and which ever works for you should be employed.

Its all down to what type of trader you are .
Also what type of charts your using.

Theres no right or wrong answer to this . Its what works best for you

Remo not having a go.....Thought id join in on a good debate