I struggled for a long time to understand this simple picture:
Why are the price waves drawn that way?
Instead, eventually I began to ask, How would I want to draw price action accurately? My initial thought was open/close, however very quickly I realized this leaves out too much information, for obvious reasons. In trading smaller time frames, (1hr) volume is important. Movement is important. Where players are is important. ZONES are important. Price is not static. (obvious, but a bit of an a-ha moment after reading SB). I NEED to know the highs and lows to track what price is acceptable by big money. So o/c is out. Perhaps later this will come back, but again, following wave construction ideas, I want to be able to create a tool that follows price action as carefully and as best as possible. I simply require the highs and lows.
The eventual big question was: Why not H-PH PL-L instead of H-PL L-PH. Why cross high to low, and not simply high to high? I’m still not sure I have the correct answer, but I think it has something to do with the earlier thought of price not being static. See, connecting candles via H-PL L-PH crosses price. It connects them. In a way it forces price to flow and for the viewer to see price in a slightly different light.
“In my system, I don’t see “Price” per se, the way most do… I see Price as being smeared out over a particular Span of both Time and Distance. Thus, for me, Price has Shape, Form, Contouring, Depth, Height, Width, Length and Duration. In other words, in my system, Price is a living, breathing entity. Not static.”-Signal Bender.