I am slow posting these days on this forum because I am busy trading on the share market as well as forex cfd's.
To Tegasite :
If you are using candlesticks then you should not be using a trend indicator like the Ergodic. The candlesticks themselves will tell you how to trade. I certainly do not use this indicator - it is redundant.
The price action of the candlesticks is quicker than the Ergodic. Let the losers use this indicator!
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I am really interested in this your candlestick trading strategy but dont know how to go about it
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The method is fully outlined in the thread where you saw it. What else can i say?
The idea is to trade the extreme of extremes in order to give you an edge.
The Bolinger bands are used bring about this edge.
Once the pattern is seen, combined with the BB, you have an extreme, with a high probability of returning to centre. The 1/5 min charts are used to make this extreme as extreme as possible.
A stop loss is then not needing to be set (caution) but kept in mind if things go wrong - unlikely. This shuts down one big problem, stop loss hunting.
I will be posting again with a new thread of my own in which I show several candlestick successful trades done with this method. They will be real trades done live, ie they are not tailor made just for this forum.
Right now I am just checking a few things. If you follow thro when I post, you will see how it all works.
My method is a semi scalping method - this is not suitable for everyone.