Here is the 5 minute chart :
Notes below the chart >>>
By
tymen1 at 2008-04-07
The time of short entry is 19.40 and shown on both charts with a black vertical line.
At this point the BB is going up with the MACD level. Therefore, slicing the angle in half, the resultant (price) is going
slightly up.
The best entry we can expect, therefore, between the middle and upper KC bands.
That is where the price is
now so we go short
immediately.
Now you can see that the price actually improved a little 3 candles on, and we could have entered better. But then, we do not know that and we could also have done worse.
So our entry is considered good and we wait for the MACD to tumble down and go level and collect our profit!
Remember : Look for quality patterns. Do not rush in and pick any pattern. Be discerning.
Next post - THE EXACT REASON WHY CANDLESTICKS WORK SO WELL. PROBABLY THE MOST IMPORTANT POST ON THIS WHOLE THREAD. IF YOU UNDERSTAND THIS, YOU WILL UNDERSTAND AND MASTER CANDLESTICKS.
DO NOT MISS THE NEXT POST !!