Stock Option Trading | Problem with Candlesticks & Elliot Waves

Posted by homeoptionstrading on Jul. 03, 2009

For the uninitiated, Point and Figure charting is the only charting method that analyzes price without the noise of time. The noise amplification of time in other forms of charting – Candlesticks, Heikin Ashi and OHLC is visually disruptive as you try to reconcile the conflicting patterns between daily, minute, weekly and monthly charts. This visual confusion is removed with Point and Figure charts. Some retail training firms like to popularize the myth that, Everyone looks at these Candlestick patterns/Elliot Waves in charts. They are partly right. Though, their use of the term Everyone applies to retail off-the-floor traders who collectively only make up ~ 15% at most, in some cases even less, of the total traded volume on exchanges, depending on which exchange it is. Which raises the question: What are the eyes of those on the floor moving 80 % of traded volume looking at? Price and PRICE ALONE. With truck loads of calls and puts to hedge, floor traders could care less how many times during the d

Categories How To

Tags candlesticks, elliot wave, how to trade options, online option trading, online options trading, option trading strategy, options trading strategies, pnf, point and figure, point and figure charts, stock option trading, stock options trading, technical analysis

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