Hi Could you explain the theory or where to learn about this type of chart please?
avi8tur
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@WinstonWallace, I look for long-term companies, 30-40 years, and identify the top and bottom trend lines. Companies 10 years or less might not give a good indication of lower trends.
The idea is, buying at the bottom of the trend provides less risk. However, buying near the top line does. But again, please do your own research before buying.
WinstonWallace
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@avi8tur, Yes I agree but that was not what i meant. My question is behind the theory of heikin ashi chart I guess, I have never seen a chart like this before in diagonal..
avi8tur
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@WinstonWallace, I wouldn't pay too much attention to the heiken ashi, as apposed to the bottom and top parallel channels. I am viewing the chart in "log" setting.
This channel is the result of 30-40 years of recorded activity in NYSE.
WinstonWallace
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@avi8tur, Ok yes I misunderstood and thought heiking ashi had to do with the parallel channel when in reality this way of showing 30/40 years had to do with the log config what caught my attention. Thanks!!