Great thread! I’ve been reading and re-reading it over the weekend. Is there a similar alternative to the keltner band?
Although Kenneth Lee tried to answer this one, I will answer it myself carefully.
Thanks Kennneth, for trying - that is how you improve your own work!! 
To answer…No.
The first stop loss of 9/10 pips is [U]deliberate[/U].
It shuts down a runnaway retrace first trade.
This works in accordance with the following hyperlink :
Each of the retraces which are traded have their own respective stop losses [U]as seen in the diagram.[/U]
You can choose to have each stop loss different…say each one 10 pips (or less if you wish) above each individual retrace point price.
So if you have 3 retraces at prices 25, 33, 17, then you could set each stop loss at prices 35, 43, 27 respectively.
…Or you could have each stop loss the same…that being the 3 pips above the star!!
For example, the star top may be price 35. Then you could set a [U]universal [/U]stop loss of price 38.
[U]The choice is yours to make.[/U]
In either case, you always lower your stop loss when the price action drops so that you break even if the price action suddenly betrays you.
Need 5 pips with 2 amounts to break even with the 10 pip stop.
That is absolutely correct. But it is also easy to make those new pips.
5 pips on a retrace is really nothing.
Remember also that this happens only when it is a “retrace first” trade.
If we have a “pips first” trade, we need not worry.
This [B]Ultimate Candlestick Trading Method [/B]will be used exclusively in our future trading of the engulfing pattern.
You will then get a better idea of how it works and the great advantages it has.
Welcome to this thread Edacsac. I hope you will find your time here rewarding.
As you go on reading the thread, you will be aware that the settings for the Keltner bands in this trading method are not the default ones but …
period …4 or 5
factor…1
The Starc bands are a similar alternative to the keltner bands and these are used extensively in trading.
You will see their use as you go on in the thread.
The Starc bands have no settings.
You can read more about these bands on the following hyperlink :
Thanks Tymen, Put on 5 trades today … using the ultimate candle stick method …the first one didn’t go so well …the problem was i jumped the gun on the retracement …so by the time price fully retraced and just barley came back to me, i got out with a small 1 pip profit…that was great…didn’t lose any $$…
the trick i suppose is to be careful on the reentry point …i noticed on the 5m chart a reversal candle pattern will usually develop at the top of the retracement… similar to the one on the main chart … if one dosent develop…i considered the trade to be over…
so the following retracements were entered at the point of a dark cloud, engulfing,or evening star on the 5 m chart …and it went very well…
made a total of 70 pips on 3 trades 
Took a 10 pip loss on the final trade …I got stopped out and then price immediately ran the correct direction and left me wishing i was still in the trade 
also, another helpfull tip i discovered, is if an evening star starts to develop on the 20m chart, I will wait for it to develop on the 30 or 35 m chart before i go in…the pattern seems to work better once it develops in the higher time frame…
… wow!!! what a great method you have shared with us…Thanks!!!
The [B]Ultimate Candlestick Trading Method [/B]appears to have a built in protection mechanism.
Well done!!
No pips lost!
No harm done!
the trick i suppose is to be careful on the re-entry point …i noticed on the 5m chart a reversal candle pattern will usually develop at the top of the retracement… similar to the one on the main chart … …
I have noticed this too…but it is not always the case because the patterns developed on 5 minute charts are unreliable, that is, they do not nearly have the reliability of the longer term charts.
Patterns formed on a daily chart, for example, are extremely reliable.
so the following retracements were entered at the point of a dark cloud, engulfing, or evening star on the 5 m chart …and it went very well…
So I take it that you short entered when the price started to go down again.
It is best to get as close to the top of a retracement as you can.
Posting some pictures/charts of these entries would be of great interest to us all and make a good discussion point.
made a total of 70 pips on 3 trades
That’s 23 pips per trade - well done!!
I have yet to see that sort of consistency from the indicator traders, with such a short learning time!!
Took a 10 pip loss on the final trade …I got stopped out and then price immediately ran the correct direction and left me wishing i was still in the trade
This can happen even to professionals.
Oh dear,… a huge, massive, tremendous, gigantic loss of…10 only pips.
Your risk/reward ratio is completely intact.
At 23 pips win and 10 pips lost we have 10:23 = 1:2.3
Excellent!!
also, another helpfull tip i discovered, is if an evening star starts to develop on the 20m chart, I will wait for it to develop on the 30 or 35 m chart before i go in…the pattern seems to work better once it develops in the higher time frame…
The pattern will develop quite differently on a higher time frame. Be careful here. As I said, higher time frames are more reliable.
But when the pattern has formed on you chart, and it is a quality one, with the BB favourable, then it is time to enter.
wow!!! what a great method you have shared with us…Thanks!!!
Glad to be of service to you Neboxian!
It looks like you are really understanding the system and how it works.
Now [U]continue to soldier on[/U] and we will soon be considering a new pattern, the engulfing pattern.
[B]The time has now come to show the Starc bands and entry points in pictures as I have promised[/B] >>>
By tymen1 at 2008-07-01
This picture shows the Starc bands going up,level and down.
Retrace points are shown in blue.
Exits are shown in red.
The dots represent the most likely points. The larger dots are the highest probability.
The arrows with the 1,2,3 are walkings of the bands, either touching or some distance away. The numbers are the candles…1st, 2nd and 3rd on the band walk.
I have kept the drawing simple, without clutter.
You may find it useful to print the picture for future reference.
[B]Behold this very important post.[/B]
It was post #325 made by Cbarnett808 and can be found on page 33 of this thread.
It was [U]the post[/U] that made me decide to go on a pilgrimage to search for a trading method that would have a consistently [U]positive risk/reward ratio.[/U]
Up till this time we had only looked at scalping trades, always exiting when the trade was in our favour.
There is nothing wrong with that approach as such, if you [U]always [/U]exit when the trade is winning for you. In fact, that way you will never have a loss.
But when searching for greater numbers of pips, rather than just scalping, losses are a possibility, and thus the search began to deal with the risk/reward ratio.
In this search we have considered many things. Better entries, multiple lots, where to place stop loss orders and, of course, the fluctuations which result in pullbacks or retracements.
Suitable time frames have been chosen to develop a method that will handle all situations and still keep the risk/reward in our favour.
I believe we have now found that trading approach and I call it the [B]Ultimate Method for Candlestick Trading.[/B]
It can be used both long and short.
[B]Therefore, I consider it now appropriate to bring this long search, with all its relevant posts, to a timely END.[/B]
[B]I now declare this part of the thread, starting from page 33 to be now CLOSED.[/B]
We will now use the [B]Method[/B], as developed, to go on in our trading.
We will now look at a new pattern, the going long engulfing pattern, by popular choice.
[B]At this time I am going to take a short break of a few days, time to rest from this exhausting work, time to prepare new material.
And above all for me, time to do some of my own trading as well.
See you all soon, keep posting in the meantime.[/B]
Excellent Tymen. Feel i have learnt so much cause of this thread. Definitely my foundations are being built here. I do feel i can perform as required to make the system work.
Problem i have is the pschology of trading that i am working on, as i tend to get ahead of myself. I am patience an execute properly for a trade or two and generally am successful following the methods learnt here. My problem is i then get excited and break every rule…its me…so i am still doing demo until i can get myself sorted…think iiii…think …iiiiii…think…iiii will get there…
Anyway thanks for all this great stuff, and you definiately deserve a well earned break, but i am looking forward to seeing you back here asap for the LONG EGULFING pattern. I am fascinated to see how it is all going to work!
I love those SL rules…they are GREAT!..i could feel/sense that it was there, this brilliance, but i couldnt quite get it. I was figuring an early exit on the retrace was better than waiting to renter, but i still couldnt quite get it but NOW we have THE Ultimate Method for Candlestick Trading. I knew you were taking us somewhere, but when it finally came it was like. AHA…THAT IS IT!!!..WAHOO!
Hi Tymen. I have read your thread here over the last week and am very impressed with your teaching style and with this method of trading. I have never felt the need to post on any forum before now, but I want you to know that there are those of us “quiet ones” out here that truely appreciate all you are doing here.
I have started trading on a demo account and have had mixed results because I am so anxious to trade I forget to be selective in my choices of candles. The up side is that when I do make the smart choice I am amazed at how things work out. And when I make a not so smart choice I am aware of why it doesn't work out. I know with patience and time that I will be able to make more right choices and I have you to thank for that. Thanks for this wonderful method and don't feel that the lack of responses from out here is in any way indicative of the support you have for this terrific method of trading.
I will be glued to this thread for any and all future posts.
JerryIs the new Starc band graph based on the main chart or the 5m chart?
Tymen,
Have a good break.
I take it those dots represent short positions only?
Tymen; if anyone deserves a break it is you, This thread is far and above the best designed and executed I have seen. I am sure there are alot of other folks reading your thread that don’t chime in. I was like that for along while , Don’t want to look the fool. But you know as well as We have been told our entire lifes there are no stupid questions, except the ones we don’t ask…
Hope you have a great time off and don’t spend it all working on this. Have a day or 2 at the beach ( oops forgot it is winter down there) anyway have some fun. Life is to short not to enjoy it. 
We will be waiting for your return… Take Care Ken:D
Just to answer this question,I believe the starc bands are only used on the 5 min charts and not on the main chart.
when have we gone long vulcan?
We’re about to.
I don’t know about the rest but this is the best forex course i have ever gotten.it has really improved my trading.
“ericoco: I don’t know about the rest but this is the best forex course i have ever gotten.it has really improved my trading.”
I feel the same, although I am not quite through it yet. I can’t wait to get started.
hi
were do i find the start of this thred
The top of page to right list all pages yours may say first, mine says last the last page is the begining. It brings it up to last page viewed…
I use candle sticks on 1H or more because I don’t have enough time to watch smaller timeframe