Quote:
Originally Posted by ihatemy925
Tymen,
My first post in your epic thread. Thank you for your time and dedication. I have read all 100+ pages and have a good understanding of the strategy and style of the system. I have used it for about 3 weeks now on my demo account and have had good success. However, here are a few things that I struggle with:
I have mainly been trading the evening star pattern...
1. Trading opportunities - On a 30 min time frame they have been few an far between, sometimes only once or twice a day for the Evening Star on the upper BB.
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Thank you for your very interesting post
Ihatemy925 and welcome to this thread.
I will answer each one of your questions.
1)
Trading opportunities
The solution here is simple.
I trade 4/5 main patterns - evening star, dark cloud, piercing pattern, engulfing (long and short) and 3 green soldiers.
Not only that but I use time frames 20,25,30 mins..........1 hour.
Not only that but I trade 6 different currency pairs (4 majors + 2 locals).
That is 54 charts with a choice of 4/5 patterns on each.
With that kind of intensity, a trade can be found almost anytime.
For example, my trade examples were found immediately, traded and screen printed straight away.
2)
Exits
Which level are you using?
It sounds like no level and a single amount trade.
If that is so, then your trade is frought with danger.
As you could see from my last example, I explained what would have happened if 2 amounts were not used.
You must use one of the levels to be successful.
As you can see, this whole thread has been devoted to testing this stuff.
Statistics show that some 60% of candlestick trades will fail.
The only way to overcome this negative edge is to use one of the levels that are given in this thread.
3)
Reversals
It is better to see the appearance of a green candle as the end of a trade, especially if it appears around the mid or lower Bollinger band.
So do not get too greedy and continue after the first trade.
You will need more experience before you can do linked trades.
Very important - The morning star is not so strong - better is the
morning doji star.
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Maybe a better question would be: If it never hit your first profit target, would you ride it all the way to your PCI s/l and take the hit?
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This is the correct answer to your very last question.
A trade is not finished until it hits either the target profit or the stop loss.
I have had trades go within 1 pip of the stop loss and then go on to a great profit - in fact, I think there is an example of this very early on in this thread.