Explaining Lines and Use.
Line
A line chart is important to traders and investors, as they (traders and investors) consider the closing price to be more important than the opening price, low and high during a particular period.
In summary, it is only a graph that takes into account the closing price of each Bar.
This graph can be quite useful in the hypothetical case of certain patterns.
But let's go to an example:
ETH Eliot Wave Impulse.
Wave 1 appears mainly after a correction greater than 50% in the Fib level, then we make a speculation and seek to confirm a minimum retracement of 61.8% and 71.6% (This is used by the majority although sometimes a greater 50% some consider it valid , there is debate on this issue, even if I put 50%, daniel's is still invalid). Both Wave 1 and Wave 2 rules are met.
Wave 3, It is usually higher in 161.8% of the minimum of the retracement of Wave 2, and exceeds the maximum of Wave 1. Fulfilled
Rule: Setback of 38.2% and a minimum of 23% Completed of Wave 4.
Wave 5: last impulsive section exceeding wave 3, with a projection of 161.8% of wave 4, and normally of similar length to wave 1. This wave is characterized by a significant increase in volume, which is not accompanied by a rise significant price. It would correspond to a distribution phase in which volume plays a fundamental role.
But...
In candles on the binance platform a huge shadow appeared on Wave 4 that was below the maximum level of Wave 1, currently it is not. Therefore, some traders prioritize only the closing price. In cryptocurrencies the volatility of the assets is usually common, and there are "shadows in candles" that honestly are somewhat absurd.
A line chart is important to traders and investors, as they (traders and investors) consider the closing price to be more important than the opening price, low and high during a particular period.
In summary, it is only a graph that takes into account the closing price of each Bar.
This graph can be quite useful in the hypothetical case of certain patterns.
But let's go to an example:
ETH Eliot Wave Impulse.
Wave 1 appears mainly after a correction greater than 50% in the Fib level, then we make a speculation and seek to confirm a minimum retracement of 61.8% and 71.6% (This is used by the majority although sometimes a greater 50% some consider it valid , there is debate on this issue, even if I put 50%, daniel's is still invalid). Both Wave 1 and Wave 2 rules are met.
Wave 3, It is usually higher in 161.8% of the minimum of the retracement of Wave 2, and exceeds the maximum of Wave 1. Fulfilled
Rule: Setback of 38.2% and a minimum of 23% Completed of Wave 4.
Wave 5: last impulsive section exceeding wave 3, with a projection of 161.8% of wave 4, and normally of similar length to wave 1. This wave is characterized by a significant increase in volume, which is not accompanied by a rise significant price. It would correspond to a distribution phase in which volume plays a fundamental role.
But...
In candles on the binance platform a huge shadow appeared on Wave 4 that was below the maximum level of Wave 1, currently it is not. Therefore, some traders prioritize only the closing price. In cryptocurrencies the volatility of the assets is usually common, and there are "shadows in candles" that honestly are somewhat absurd.
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