The wick can sometimes hint at the future price direction. Therefore, the highest price, lowest price, and wick cannot be ignored.Patrick K wrote: Tue Nov 03, 2020 4:04 am Many of you use moving averages in your trading strategy, or some kind of indicator which is based on a moving average derived formula. But whatever type of MA you use: Simple, Exponential, Linear-weighted, Smoothed, or other, it is calculated on a base data which in MT4 at least, can be:
- Close
- Open
- Low
- High
- Median -> (High+Low)/2
- Typical -> (High+Low+Close)/3
- Weighted (H + L + C +C) /4
- Or other
All variations can be used for various types of strategies however the most used seems to be the CLOSE.
And this is my question; because the CLOSE looks only at the final price of a candle, while the MEDIAN calculates in the wicks too. One can say that the wicks are only noise, but ive also heard that the wicks can sometimes hint in the future price direction, so it could be a mistake to solely use the CLOSE.
Would be lovely if you guys chime in and give your thoughts on this.
