Hi David,
I am from India and a Great Fan of yours and have been following your website for sometime now as i am very new to TA.Your basic courses are just excellent for a beginner like me.

Coming to my question, i have one conflict regarding candlestick chart and drawing trend lines on that .

A lot of people say that while drawing trend lines on candlestick charts, we should join wicks and lot of people suggest we should join from bodies.

I am very confused regarding this, because sometimes the trend lines gives completely different picture if we join body or the wick.

And for a intra day or swing trader like me, it would make a huge difference if i join wicks or the bodies.

i would need your suggestion regarding the same

thanks
Ashish

[David Waring]

Hi Ashish,

Thanks for the comment I am glad you like the site and are finding it useful.

Remember that the bottom of the wick represents that low for the period that you are charting, the bottom of the body represents either the open or the close (which ever was lower for the time period you were charting), and the top of the wick represents the high.

The reason why some traders draw trend lines off of the body of the candle and ignore the wick is because they feel that the open and the close of a particular period (especially daily charts) are a more accurate representation of what the true market action is, and they feel that the wicks can represent noise in the market.

With this being said most traders that I know use the wicks to draw their trend lines so as a new trader you may want to just start there and then tweak it if you feel it is necessary as you gain more experience.

Hope that helps.

Best Regards,
Dave

Hi...

firstly sorry for a little late reply, i was a little sick and was on bed.

thnx for ur valuable comments..i hope to learn more from ur valuable website.


regards
Ashish

The confusion raised because of this chart as i follow Indian markets,

joining of wicks or body would have resulted two completely different results

with wicks we can clearly see a triangular breakdown..

trend lines a and b



regards
ashish

[David Waring]

Hi Ashish,

No worries I hope you are feeling better now.

I think most traders would agree that you are drawing the triangle lines correctly in the chart you have posted.

Best Regards,
Dave