Sorry Ray_1, I know nothing about Oanda’s charting except what I have read on this forum.
What I read is that the charting is effectively useless.
For professional candlestick use, Oanda does not have the standard of charting necessary to handle the task.
I, therefore, do not recommend it for candlestick use, but it is a good honest broker for general use.
But i had already opened an account with them liao. I think it is too late to back out. So what charting software should I use? Pls suggest.
Hi everyone and hi tymen,
i’ve read this thread till page 34 in 2 days, i feel like my head’s gonna explode but i’m really happy with all i’ve learned through all these posts.
first of all, I’d like to thank you tymen for sharing your experience with us newbies :). As I’ve been playing poker for long and had good results (even though there are players that are much better than me), I also gave advice to the people that were asking me questions, I really feel it’s a good thing to help each other.
secondly, i’d like to apoligize if i make a few english mistakes, as i learned english at school, so there are for sure a few mistakes here and there :rolleyes:
now, let me ask you a question. I’d like to practice the Evening Star Pattern on the 20, 25, 30, 35 … 60mn charts. However, as said earlier, MT4 only offers 30 and 60 mn, so that’s why I was trying to get dealbook with the link you gave us on post number 294, but I wasn’t able to get it, or should I send them a copy of my ID, or i’m not really sure i understood it all
I’m sorry if this has been answered after page 34 (maybe there is a way to have these charts on MT4, maybe someone explained how to get DealBook lifetime), but i really would like to practice on these candlesticks, and if you could explain me how to get DealBook lifetime or set the 20, 25 mns charts on MT4, that would be very nice from you
I know that there is a possibility to have a lifetime DealBook with Kinetics, however, do I have to deposit money ? or i can demo-trade ?? and do i have to send them a number of papers by mail, like copy of ID and things like that ?
Oh, and even if i’m not the first one, nor the last one to say it, but thanks again for teaching us with that much patience !
Sammy
Hi Tymen,
I can’t find any inputs to adjust on my Dinapoli MACD in Dealbook and I see you are using a different platform. So I tried those settings with the standard MACD and it seemed to flip it. In DB they have 4 lines: MACD, signal, Histogram up and histogram down. I’ve only got the MACD line visible.
Do you think this might work?
Thanks for everything and keep up the good work.
Thank you for the advice Tymen, I will make a note on all of the above.
I customised my account to 10:1 so I don’t over leverage. And it’s great that I can trade mini lots on a standard account.
I recommend the GFT Dealbook because I believe it has the best charting that is out there and it is so user friendly.
I use it exclusively in all my posts.
To get the Dealbook demo indefinitely, I recommend google Kinetic securities in Sydney, Australia.
Telephone them and speak to Jay Pace, tell him Tymen sent you.
He will be happy to serve you.
I have received an email from him saying that he is keen to serve any customer that I refer to him.
You still get to deposit your funds in America (I take it thats where you live).
[B]All readers please note that I do not receive any commissions or inducements for my recomendations.
They are entirely my effort and I get no reward whatsoever for doing this.[/B]
Firstly, welcome to my thread - hope you learn much and make many pips profit!!
An indefinite demo is offered with Kinetic Securities of Sydney, Australia.
Speak to Jay Pace, tell him Tymen sent you.
However, you will be expected to deposit funds and trade live eventually. Not immediately but [U]sooner or later - it is not an indefinite freebie!![/U]
But you get the demo much longer than GFT direct who give you only 30 days.
or i can demo-trade ?? and do i have to send them a number of papers by mail, like copy of ID and things like that ?
No ID or such is required for demo trading but live trading with any broker requires various bits of information to identify you and set you up with your money.
This is only obvious.
If you are in America, your money stays in a Morgan Chase bank in America.
This is good news.
Going with Kinetic is definitely your best solution - way better than MT4.
I use Kinetic myself and I am glad I have found them. Their service is excellent.
Hmmmmmmmm. 
Sorry about this Vulcan, but did you read my post #787, page 79, correctly?
Note that you cannot put the inverted values into the Di Napoli MACD.
You have to open a new MACD to put the values into.
and then from post #786 :
To turn this MACD upside down we invert the values, as follows.
long moving average = 8.3897 (8.39)
short moving average = 17.5185 (17.52)
signal - not needed
As you know, we have never used the histogram - so make it invisible.
The signal is…“not needed” (see quote) - so make it invisible.
You only use the MACD as you know - right way up for shorts and inverted for longs.
Yes, I am using an older version of Dealbook.
It is not as good as yours.
Right now I have a lot of material to post but I cannot get thro to Image Shack (traffic too heavy), especially when transmitting from Australia.
So I will leave it till tomorrow.
I just finished up my third run through the thread, becoming a tad bit clearer each time I run through it. Looking forward to the upcoming posts.
I am putting together a perma link document that points to the posts I find important to myself for quick access, it will really help cut down on the time needed to review the material. Running through 70+ pages of posts looking for the nuggets of info is wearing me out!
Tymen,
Thanks, I just needed some clarification. You were talking about taking the [U]settings[/U] from Dinapoli and inverting them within the standard MACD.
I missed that the first time around.
[B]To Jimmy Jones[/B]:
You could, if you wanted to, print the whole thread.
Then you would have a permanent hardcopy and could easily refer to it.
It might wear out your printer though! 
[B]To VulcanClassic :[/B]
No problems! Soldier on!!
[B]OK, new material.[/B]
We are about to trade long with an engulfer!
We have a good entry method and we now have to set up the [B]UM [/B]for long trading.
After that, we will look again at the starc bands and retracements (pullbacks).
What I am doing, is setting up a foundation first.
Then we will look at a trade…
first the traditional way,
then with the 5 minute KC method for better entries,
then with multiple amounts,
then with the retracements.
You will see, not only how the trading works, but also notice the big increase in pips gained as we progress towards the [B]UM[/B].
Next post - the [B]UM [/B]for longs.
To trade long effectively, we simply invert the [B]UM [/B]>>>
By tymen1 at 2008-07-23
Hmmmmmmmmmmmm.
That did not work. :mad:
So lets redraw the diagram.
Here we are !!
By tymen1 at 2008-07-23
[B]Explanations next post.[/B]
[B]Explanations of the UM for long trading.[/B]
The retracements are as before.
We will have more to say about retracements later. It is important that you get your entry close to the retracement point, if not at the very point.
To enter far from the retracement point means that you could well hit the stop loss that you set.
More on all this later.
I feel very excited about what I am going to reveal!!
There are great things to come!!
Now, back to the retracements…
They go in 2 amounts,
You exit all at once, or in stages if you so wish,
The stop loss is moved to break even as the price goes in your favour.
Watch the number of candles you trade on the main chart - don’t go beyond about 7 of them unless the price has rocketed in your favour.
[B]Next post - a full explanation of that confusing pips first drawing.[/B]
[B]Now, whats going on with that pips first drawing? [/B] 
This is an improvement to the [B]UM[/B].
[U]Procedure :[/U]
We enter long, using the [U]5 minute KC chart[/U] to get a good entry.
Part of this action is that we set a stop loss 10 pips away. (correct direction of course!! 
)
If the price action goes against us - a retrace first trade - then we will hit the stop loss and lose [U]1 amount [/U]of 10 pips.
But if the price action is in our favour, then…
after gaining 5 pips we :
[B]I can now see that I will need a clear diagram to help explain this - I will do so in the next post.[/B]
If the price action now reverses, we will break even with our 1st amount and lose 5 pips with our 2nd amount.
If the price action continues to go in our favour, we move the double stop loss 5 pips every time the price action moves 5 pips.
Eventually, the price action [U]will [/U]reverse (point E in the diagram) and hit the double stop loss at point D.
That is the end of it.
[B]Next post - diagram for clarity.[/B]
[B]This diagram should help explain the prevous post.[/B]
The procedure is much easier to understand in picture form >>>
By tymen1 at 2008-07-23
You can now see how to enter.
You can now see that the exit is automatically determined by the stop loss.
With only 1 amount you would make previously on pips first = 10 pips.
With this improvement with 1 amount only in this example = 15 pips.
With this improvement with 2 amounts only in this example = 25 pips.
Two amounts definitely makes a difference, even if only for a small price movement.
This should improve confidence at the outset.
This new improvement I have developed after some research.
You can read about it here :
Very interesting, can’t wait to try it out on the demo account… nothing else to add really, just letting you know I’m still listening
Hi,
In order to understand tymen’s UM SHORT and since i went again thru the whole thread (like Jimmy Jones I presume), I felt it could be interesting to have a summary of the short method with all the relevant links.
So here is my rewriting proposal and i thank yet everyone to check AND corrrect if i something is wrong or not enough accurate. If one has samples of the different pattern it could be helpful for the readers to see them to better understand.
I will all the time rely on tymen’s post to take the pictures he provided. Obviously I hope tymen is going to correct and add tips then release the RC1 until the GoldMaster release.
Tymen, my apologies for all the mistakes that you will find in this text. Also sorry for my english which isn’t my first language.
You may want to have all tymen post for the method then here is a link to a WORD file that is downloadable (13MB and thanks to cordite).
Last update :
2008-08-17 New links added to last section.
2008-08-13 New section created : Interesting Links. You may find there many tips and interesting info.
2008-08-13 Updated PNC order.
2008-08-11 BEP section : What is a bad ESP from post #982
2008-08-09 Vocabulary section : Tips from GFT live chat about DealBook S/L order.
2008-08-09 Vocabulary section : Fine tuning of STARC & Keltner added from post #974
2008-08-07 Add note : Introduction->Tips from post #953
2008-08-07 Correction : Upper limit of trading timeframe set to 60mn
Vocabulary
First of all, let’s start with some vocabulary stuff :
[ul]
[li]UMS = Ultimate Method for Candlestick Trading. It is the SHORT method.
[/li][li]BB = Bollinger Band (default settings = period 20, deviation 2 on close price, often blue)
[/li][li]CCxx = Candlestick Chart set on xx minutes. It will often be CC5, CC20, CC25 on the different picture the reader may see via the provided links.
[/li][LIST]
[li]CC5 is the “working” chart to decide when one is going to exit or keep the running trades
[/li][li]CCxx where 60mn >= xx >= 20mn are the candlestick pattern charts detection
[/li][/ul]
[li]SB = STARC Band (default settings = factor 1, middle signal is useless and can be removed, often orange)
[/li]Note : Fine tuning settings are
ATR periods = 15
ATR multiplier = 2
starc bands price = close
starc bands periods = 6
starc bands type = simple moving average.
[li]KC = Keltner Channel (Period 4, factor 1, often dark)
[/li]Note : Fine tuning settings are
ATR periods = 4
ATR multiplier = 1
EMA periods = 20 (the GFT platform specifies this as a modified moving average and does not give the periods, but a little research shows this is the correct value)
[li]DMACD = DiNapoli MACD (default settings = Close price, signal is useless and can be removed, often red)
[/li][li]RET = Re-Trace mode, that is we expect the price to return UP.
[/li][li]PFT = Pips First Trade (that means there will be at least a second trade)
[/li][li]ESP = Evening Star Pattern.
[/li][li]BEP = Best Entry Point (1 amount)
[/li][li]REP = Re-Enter Point (2 amounts)
[/li][li]BEX = Best Exit point
[/li][li]SL = Stop Loss (just in case)
[/li]Tips for DealBook users : The Parent And Contingent (PNC) order type contains a Parent order and two Contingents. The parent order can be a Market, Stop, or Limit (typically used to enter a new position). The Contingents are a Stop and Limit, and are OCO by default. The contingent orders will be ignored until the Parent order fills (i.e., the parent order will fill before the contingent orders before working orders).
To place a PNC order in Dealbook 360: Click Trades -> New Order, and select the Parent and Contingent order type.
Warning : When you use PNC, DB actually make 3 orders. 1 for SELL (my case because i went short) and 2 to BUY (1 for your SL and the other one for the TP)
OCO means “Order Cancels Order” which means that all the 3 orders are linked together.
If you uncheck OCO, then either your SL either your TP will still run. Keep that in mind.
[/LIST]
Introduction
First of all, 2 requirements :
[B]Do remember to demo trade!!
The whole aim of this thread is to teach you to trade competently.
Got it ? No ? Let’s repeat : DEMO TRADE ! AIM OF THREAD = TRADE COMPETENTLY
[/B]
UMS is a short method. It is based on the candlestick study (see Japanese Candlestick Charting Explained).
2 trading software are often mentionned on this thread. They are MT4 (see Metaquotes) and DealBook (see GFT). MT4 has got a timeframe limitation (see #261 to surround it) and seems less powerfull when dealing with many charts (UM creator use up to 48 charts, see #300!). The second one seems to be time limited for its demo version and is unlocked asap an account is opened from a broker (example Kinetic Securities).
You need 2 main chart templates for UMS to work :
[ul]
[li]Main chart for all your next CCxx where 60mn >= xx >= 20mn. You must have a candlestick chart (usually red for down, green for up) and BB
[/li][li]Working chart for CC5. You must have CC, BB, KC, SB, DMACD,
[/li][/ul]
Note : In order to have a more clear screen, you can also set 2 different CC5 template. One for the BEP (CC, BB, KC, DMACD) and one for the RET and BEX (CC, BB, SB)
Tips :
For the trading chart you can :
For charts of 20-35 minutes we use a 5 min chart.
For charts 40-1 hour we can choose a 5 min chart or 10 min chart. (tymen generally find the 5 min chart to be better).
For charts of 4 hour and daily, you could consider a 5 minute entry chart, but here the proportions are very different and you are now probably better off going for a 45/50 min entry chart for 4 hour mainchart, and use a 4 hour entry chart for a daily mainchart.
In a daily main chart, a 5 minute entry chart really becomes ridiculous!!
The UMS is based on a single pattern recognition which is the ESP which is bearish.
Enter the trade : BEP
Main chart = Radar for pattern
So, as you can guess you choose a currency pair and apply the main template in order for you to look at your main chart (xx>=20), hunting the completely finished ESP (#586).
Note : That is why we can set all the charts from 20mn to 60mn (step 5mn), to maximize the probability of finding one ESP in any given day. The multiple charts are also in all the 4 major currency pairs so that there is now a great chance of finding a pattern.
With up to 44 charts, and little bit of luck, one may get 4 patterns in an 8 hour period.
Pips on all of them!!
Remember… no patterns - no trade - no pips - no money!!
You must understand that UMS can’t deal with approximate candle. We look for very clear ESP. No deal with that !
Note : If the shape is designed while the BB is dramatically UP (like making a trumpet design) then leave the trade. It is too risky. For a whole explanation of that see post #982
Once you find it, JUMP to the working chart = CC5.
Note : Let’s assume you use a 20mn main chart and that you’ve seen the ESP at 12:00. On your CC5 the current candle which is designed is yet more than 12:20. Don’t be afraid. Remember that your software has been designing the 12:00 candle with all the values of the following 20 minutes. So now you are watching the design of the first 5mn data of the next 20mn candle.
If you have made 2 CC5 templates, you have to look at the KC one.
Now the point is : where to enter ? How we can guess where is the best entry point ?
You have now to look at the last 5mn of DMACD and Mid BB and for both draw their directional vector from a same point. Then draw the sum resultant as in the example (see #207).
Note : As soon as you designed this resultant vector in your head or on a paper, you can forget the BB.
Let’s analyse the resultant :
[ul]
[li]if the resultant goes LEVEL then BEP is Mid KC.
[/li]
[li]if the resultant goes DOWN then BEP is from Mid KC to Lower KC.
[/li]
[li]if the resultant goes UP then BEP is Up KC
[/li][/ul]
Note : Those rules shouldn’t prevent you from winning more pips if ever the market is better than expected (price is upper). As usual, the more you can save from the market the more secure you will be.
You can forget KC from now on.
If you have made 2 CC5 templates, switch now to the SB one.
You have to enter the trade while you still feel safe. It is done with your SL. How to ?
Well, there are 2 school and it is all up to you :
[ul]
[li]10 pips over your current trade
[/li][li]3 pips over shadow of the star of the ESP (last advise from creator Tymen)
[/li][/ul]
Note : Whatever choice you make, you can later stick on the value you’ve calculated to set to that value all the future SL of your UMS trade !
Time to exit the trade : BEX
Well you’ve been told that the UMS work whatever happen to the price and it is true ! So now the price can either go up (RET) or down (PFT) (see #698 for global scheme)
Note : Our indicator is going to be now the SB as it is an enveloppe around the price extremes (see #618)
If PFT then you exit as soon as price go thru Lower SB and you take your first profit.
The main idea now is : if RET then we look for the price to go meet the Up SB. If reached then REP (we re-enter the trade with 2 amounts, see #621) !
Fine tuning : SB different meanings (see #712) :
[ul]
[li]If SB goes UP. If price goes up or level, you can wait 3 candles max to get more pips for REP (see #621).
[/li]Then, if price goes Lower SB then BEX !.
Note : If BB goes up also (see #654), then you’re sure this is going to be an extreme and you can wait 4 candles for REP
You have to follow the candle here. Feel if they are becomming slow, if a return is on the way.
[li]If SB goes LEVEL. If price goes up, you can wait 3 candles max to get more pips for REP (same as above).
[/li]Then, if price goes Lower SB then BEX !.
[li]If SB goes DOWN. REP as soon as price get thru Up SB.
[/li]Then, when price get thru Lower SB, you can wait 3 candles max to get more pips for BEX ! (see #690).
Note : If BB goes down also then you’re sure this is going to be an extreme and you can wait 4 candles for BEX
[/ul]
Interesting Links
13MB Word file with a copy of all tymens post (thanks to cordite)
Japanese Candlestick Charting Explained
Five Levels to know who you are
World trading times for forex (PDF download)
Multiple lot trading (WORD download)
Those Darn Market Makers
Take a breath and think …BEFORE
How the heck can I sell something I didn’t buy?
FXCaribbean, that is very nice work!