THE JOY OF CANDLESTICK TRADING - a Learning Experience

[FXCaribbean]

I am confused on the entry point using tymen1 method. If we spotted a setup on the 20 mins to 35 mins charts, we will refer to a 5 mins keltner chart as our entry point. If we spotted a setup on the 40 mins to 50 mins charts, we will use a 10 mins charts as our entry point. For setup on 55 mins to 1 hrs chart, we will use a 20 mins charts keltner charts for our entry point? Can someone help to confirm that what i am writing is correct?

Hi Ray_1,

If you read the #811 post, you will notice we should ALWAYS use the 5mn to get our entry point no matter which main timeframe the shape has been hunted in.

FXCaribbean
"Don’t go where there is a path. Open a new one and leave a trail".
If you want to understand what we’re talking about here (UMS) then read this and set your screen and computer that way. Also read the live thread, UML Live and UMS Live

[ryujin84107]

I am confused on the entry point using tymen1 method. If we spotted a setup on the 20 mins to 35 mins charts, we will refer to a 5 mins keltner chart as our entry point. If we spotted a setup on the 40 mins to 50 mins charts, we will use a 10 mins charts as our entry point. For setup on 55 mins to 1 hrs chart, we will use a 20 mins charts keltner charts for our entry point? Can someone help to confirm that what i am writing is correct?

To find an entry point use a chart that is 1/4 or 1/5 of the main chart. So for a 20, 25, 30, & 35 minute main chart then you a 5 minute chart to find the best entry. For 40, 45, 50, 55 & 1 hour main chart then use a 10 minute chart to find the entry. Hope that makes sense.

Again thank you Tymen.:D:D:D

[tymen1]

[B]Many questions today[/B] so I will hold off on posting new material until these questions are anwered.

[U]It is important that confusion does not set in.[/U]

When using the STARC method to find the retraces and exits, do we have to look at the BB’s? I read throughout the thread and it isn’t clear to me.

Another question, do you think it would be a good idea to use fibonacci to help with those retraces and such?

The BB are not really relevant here but if the price action does touch them as well as the starc bands, then this gives extra strength to the retrace.

Here again are the charts you need to detect retraces.
They are all you need.

[B]Going short[/B], eg evening star, dark cloud, short engulfing >>>

By tymen1 at 2008-07-01

[B]Going long[/B], eg 3 green soldiers, piercing pattern, long engulfing >>>

By tymen1 at 2008-07-24

[tymen1]

Hi Tymen1 wow great thread I really regret that I didnt check it out sooner. I was on 4xstar’s fantastic thread
…
youve got some great ideas and concepts ive never thought of so again thank you so much for this truly awesome enlightening thread

Welcome to this thread, Johnnykanoo!!

I have seen your contributions in several places and you are welcome to contribute to this thread.

Thank you for the very kind compliments!!

I hope you can gain something from this thread.

I thought that [B]4xstar [/B]was a she, but I stand to be corrected.

[tymen1]

WOW, thank goodness I didn’t open a real account… I guess last night I forgot to close a open order in my demo account and well… I got a real but fake, thank goodness, margin call
…
Well I�ve learned that lesson, and thank heavens I learned it with a fake demo account.

I agree with [B]VulcanClassic [/B]- I would be horrified to see that.

[U]Always remember to close everything once you have completed a trade[/U] :o

The thing to do now is to contact GFT and ask them to supply you with a new set of fake money to demo trade with.

If they will not do it, then close the account with them by uninstalling the program.

Google Kinetic Securities of Sydney (my broker) who are an introducing broker for GFT and Jay Pace will certainly give you a new demo.

If you wreck the demo again, he will give you more fake money!!

[tymen1]

I am confused on the entry point using tymen1 method. If we spotted a setup on the 20 mins to 35 mins charts, we will refer to a 5 mins keltner chart as our entry point. If we spotted a setup on the 40 mins to 50 mins charts, we will use a 10 mins charts as our entry point. For setup on 55 mins to 1 hrs chart, we will use a 20 mins charts keltner charts for our entry point? Can someone help to confirm that what i am writing is correct?

[U]To be sure[/U], you can use one of two methods :

1. Use a 5 minute chart.
2. Use a chart that is 1/4 to 1/5 the timeframe of the main chart.

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. (I 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 [U]proportions are very different[/U] 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!!

[tymen1]

[B]Thanks to all those who answered the questions that others asked.[/B]
That is excellent practise.
Answering questions helps you learn!!

I have re-answered those questions, not to challenge the integrity of the posted answers but rather to just make sure the fine points were correct.

hopefully, now, these questions do not need to be asked again.

Clarity is important - we are dealing with money!!

[FXCaribbean]

WOW, thank goodness I didn’t open a real account…
Thanks

I wonder why it is not possible to set both Entry Point AND Stop Loss at the same time with a predefined range. There are so many things that can happen during this little time (electricity failure, earthquake, computer failure, UPS failure, screen, ISP down… and so on).

Edit :

Here is the answer from the live chat help of GFT

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.

FXCaribbean
"Don’t go where there is a path. Open a new one and leave a trail".
If you want to understand what we’re talking about here (UMS) then read this and set your screen and computer that way. Also read the live thread, UML Live and UMS Live

[FXCaribbean]

[U]To be sure[/U], you can use one of two methods :

1. Use a 5 minute chart.
2. Use a chart that is 1/4 to 1/5 the timeframe of the main chart.

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. (I 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 [U]proportions are very different[/U] 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!!

Updated summary #811 with those last info. I also added a history section in the beginning of the post in order for the readers to know what has been modified.

FXCaribbean
"Don’t go where there is a path. Open a new one and leave a trail".
If you want to understand what we’re talking about here (UMS) then read this and set your screen and computer that way. Also read the live thread, UML Live and UMS Live

[VulcanClassic]

Hi Tymen,

I was wondering if there is any market condition that this system works best in. For example ranging or trending? I ask because in a strong trend, I’m hardpressed to find an entry by UMS, UML. It could just be me though.

I tried to ask a similar question back in post 110 but didn’t know how to ask I guess.

Thanks

Jeff

[johnnykanoo]

I thought that 4xstar was a she, but I stand to be corrected.

gosh tymen1 i just assumed 4xstar was a guy I really don’t know for sure so please don’t let me correct you.

4xstar if your out there please I meant no disrespect.

[matjes]

Not all my money is available to trade forex at present.

Sorry [B]Matjes[/B], there are issues around my stock trading funds that I am not at liberty to disclose on this forum.

When all my money is fully free, I can trade forex only.

It is a pity - the stock market is doing many days when the price is only falling.
And I can only trade long.

I didnt want you to reveal anything you dont want to, sorry if it seemed so
I just wondered because i thought you wrote once that youre more profitable in stocks than you could be in forex because the Australian Stock Market is so juicy.
So your aim is to trade the forex for a living in the future? Is it because you started to figure out that trading forex with your Candlestick system is the best approach for a good income?
Do you already make notes about your Forex trades using this system? If so, do you have some statistics how many patterns you trade in your sessions, what their lost/won ratio and the risk/reward on average was (Just interested in the Pips, no need to reveal any financial things)? How much of your Equity do you risk in each trade?

Many questions, sorry about that :eek:

I cant look forward to start demotrade, but first i try to get as much as possible in my mind, your thread was so far the most valuable ressource for me, really great effort of you!

[H20diver]

Hello Tymen,

First of all I want to say this is an incredible thread and I am learning a lot!

Thank you for your wonderful teaching style.

I understand the importance of the Starc bands for retracement but was wondering how much better these bands are over the Keltner?

I am using ProRealTime for charting and while they have a Starc indicator there is no adjustments for a factor setting. They do allow adjustments for period averages and ATR averages so I am not sure this is what I need. When experimenting with these settings the Starc bands are way different from the Keltner bands set at 4,1

Thanks,

H20Diver

[Ray_1]

Really learn a lot from this thread, thanks for all the guidance from tymen1. These few days the markets are very volatile, the EUR/USD and USD/JPY produce drastic movements.

[condor]

Hi Tymen,

I was wondering if there is any market condition that this system works best in. For example ranging or trending? I ask because in a strong trend, I’m hardpressed to find an entry

Thanks Jeff

I have been wondering that also. Lately, the USD keeps going up against everything. I can’t find an entry (aside from an engulfing pattern against this strong trend that stopped out on me!).

[SammyDeluxe]

Hi Tymen,

I’m reading this thread little by little, but I don’t have much time cause my exams are coming hehe, so not much time to study the Forex, but I’m trying to take half an hour every day to thread this thread

And i’ve got a question, i’ve attached a chart of the USD/CHF 1-Hr chart from today 08.08.08, and there’s an evening star pattern, and I was wondering if there was any chance to avoid this one ?

I know that the higher bollinger band is going up, however the lower band is going up too, so that’s not a “trumpet” one, even if it would have been obviously better if the higher one was level

Would you have shorted this pattern ? Thank you Sir

Sammy

[Pilgrim]

Hi Tymen,
Jay at Kinetic was very helpful in opening a demo account with DealBook 360. Thanks for the referral. I found it much easier to email him than trying to contact him by phone from the US. His specific email to his office is <[email protected]> I thought this might be easier for others to contact him at this address rather than Kinetic�s main email address.
I hope this is ok and helpful.
Bruce

[ryujin84107]

Hi Tymen,
Jay at Kinetic was very helpful in opening a demo account with DealBook 360. Thanks for the referral. I found it much easier to email him than trying to contact him by phone from the US. His specific email to his office is <[email protected]> I thought this might be easier for others to contact him at this address rather than Kinetic�s main email address.
I hope this is ok and helpful.
Bruce

Thanks Pilgrim, I was trying to contact him this week to no success. Did he mention how it would work with them in Australia and you in the US?

[Pilgrim]

Hi ryujin,
No, we did not get that far. Tymen had stated earlier that customers could use a local American Morgan Chase Bank or the Australian branch to place their funds. Jay seemed like he would be very helpful in whatever assistance someone may need in setting up an account.
Bruce

[Ray_1]

Hi Tymen,

I was wondering if there is any market condition that this system works best in. For example ranging or trending? I ask because in a strong trend, I’m hardpressed to find an entry by UMS, UML. It could just be me though.

I tink I agreed with VulanClassic point of view. It is hard to find a quality pattern in those strong trend conditions. In addition the Bollinger bands may be moving in the strong trend direction or trumpeting which make me unwilling to risk the trade. Just my 2 cents of thought.