First of all if im not in the right forum, please tell me, don’t delete my post, k thanks.
I have went though the school of pips and i have been trying out the cowabunga system, but this system is not for me. So i wondering if anyone could help me out developing a system, or give me some ideas.
thanks
Master
Hi Masterplan
First of all if im not in the right forum, please tell me, don’t delete my post, k thanks.
Well you are in the wrong forum but… the place for newbie questions
is in “newbie Island” Hopefully leeway will be given here because you are new.
Ok Cowabunga plan not for you, well maybe you can come back to it at a later date.
Have you taken a look at the system that Tymen1 is developing,
it is a bit faster paced, dealing mainly with short term trades. Have a look
here.
http://forums.babypips.com/forextown/5699-indicators-scalping-please-post-here.html
You will also need a couple of other websites, ie
Japanese Candlestick Charting Explained
Bollinger Bands - StockCharts.com
If you have any more questions I will see you in “newbie Island”. 
To Masterplan :
I give thanks to Daydreamer65 for recommending my candlestick approach on “Indicators for scalping…”.
Truely I say to you Masterplan that :
Candlesticks are a much nicer way to trade :
I think that most traders do not know this information, hence they do not bother to follow candlestick trading, yet they use candlestick charts to look at.
To prove what I am saying I give the following hyperlinks :
Candle Sheds More Light Than The MACD
[U]I started with indicators and lost money. I switched to candlesticks and started winning like crazy. [/U]
I lost only one trade so far and that is because I became excited with a profit and kicked my internet cable. The internet went down and by the time I had the show going again, I was in loss territory and unable to recover in the short term.
I have found 2 other traders so far that have dumped indicators :
Daydreamer65, are you also a candlestick trader ?
I hope to be placing a new thread soon - something like “Real Candlestick Trading with Real Charts” in which I will post trades with candlestick methods complete with charts and commentary.
I highly recommend that you consider candlestick trading as your method - you will find it much easier going - and more reliable too!
Kind Regards, Tymen Wortel, Perth, Western Australia.
tymen1, i 100% agree with you. i lost 25% of my total account in one month. i used indicators. now i am reading Steve Nison book “Japanese Candlestick Charting Techniques” and i am stunned how easy you can make green if you can read and understand candlestick. this book is highly recommend for all traders. contact me via skype (skype name: arvydasempty) if someone need this book. i have *.pdf
Once upon a time I used to write a daily candlestick report for the service I worked on at the time (covering T-Bond futures if I remember correctly). Back then I could tell you the names of different patterns, but these days aside from a select few I don’t recall most of them. I actually had the honor of speaking on the phone with Steve Nison back in the day. He called me in response to an article I wrote for Stocks & Commodities. That was some time around 1995.
These days, while I do prefer candlestick charts to bars, it’s just because I can get a quicker read on the price action with candles. I don’t try to pick out specific candle patterns or think in terms of hammers, hanging men, engulfing patterns, or anything like that.
ill take a copy of that pdf file arvydas.
Tymen1, could you give me a break down on how your system works.
thanks
master
I suggest to use metatrader 4 as charting package.
Open an unlimited demo account to practice with forex and trading chart with Forex trading with Alpari. Online foreign exchange trading. Forex news, charts, analysis. or oanda.
Download this indicator made by Collector to have an automatic candlestick pattern recognition (to use with metatrader4):
Pattern Recognition v1.0 - MQL4 Code Base
Hope this help.
Bye Corrado.
Daydreamer65, are you also a candlestick trader ?
I wasn’t until I found Babypips earlier this month & followed your
superb links.
Ok I have not lost money in the 9 months I have been involved
with forex but there again I haven’t until recently gained a great deal.
That is until I found the correct way to interpret candlesticks &
price action. Now I very rarely lose a trade.
Of course I probably could not have seen it without, fibonacci,
pivot points, RSI, CCI, stochastic, et al to guide me along in the previous
8 months, but now I am a converted candlestick trader.
In fact here’s a little stippet that I put together from earlier today, I
was slightly late on the trade because I was out of the house but
when I saw it I could not resist. Take a look.
I took 16 pips (double the value/pip because it is EUR/GBP) & ended
the week on 700+ pips.
So yes I am now a confirmed candlestick trader.
hello i im also candlestick and im very pleased with my results like i see your are very good too. do you use anything else or only candlesticks?
hello i i
m also candlestick and im very pleased with my results like i see your are very good too. do you use anything else or only candlesticks?
Intuition, sixth sense, experience??? Sorry I got carried away
a little bit there.
When my charts load on my computer there are 5,
1 Home page, accounts, various pairs, etc. This is just a candlestick chart (daily) Not great for TA.
2 Candlestick chart, sars (0.02, 0.2), ema 25,50,100, macd (12,26,9)
5 mins
3 Candlestick chart, sar,wma 25,50,100, CCI (14) 5 mins
4 Candlestick chart, sar, ema 10, 25,50, Fast stoch (14.3) 5 mins
5 Candlestick chart, Bollinger band, (at present (12, 2.0) but still in
dispute) 5 mins
These can all be changed to whichever pair I choose on a dropdown
menu, the same with the time frame. Chart No. 5 is my main chart
for candlestick formation recognition. It is a full page chart, IMO this
is the only way to recognise a formation.
These are all Oanda charts.
I also use MT4 but only for research purposes, ie I backtest on them,
I try out new systems on them.
Forex is a fluid market, (I read that somewhere, I think, but don’t quote
me), therefore any study of it must be fluid & changing, trying to hone
a system to extract the greatest efficiency.
Behind me on the television I also have Bloomberg news or CNBC whichever
takes my fancy at the time. Not that I know a great deal about news
& fundamentals, I am also trying to study that as well.
[b]Sorry about this tome, but I felt it necessary to try to explain my answer
to the question, only candlesticks?
Nobody uses just one system of TA, we immerse ourselves in all the
various forms in an attempt to get an “edge”.[/b]
:wishes:
I think the underlying message that Tony is trying to impart is the fact a trader needs to be constantly flexible to the ever changing volatility & market landscape. Especially if they’re trading under limited restraints, such as an undercapitalized account in a highly leveraged environment & particularly if they’re executing via short end timeframes!
Under those conditions, it’s absolutely imperative that retail traders use every available tool at their disposal to stack the odds as firmly in their favor as possible. If they fail to do so, they’ll get eaten alive in double quick time.
Money management & the positive deployment of psychology are the very bare minimum requirements. In fact, they’re a given!
They won’t keep you dry though, & certainly not whilst trading FX.
They have to be teamed with a very tight, thoroughly adaptable & confidently applied set of tools (strategies).
You’re competing out there with some incredibly astute, savvy & consistantly successful people. They’re armed with experience, the required discipline (well, most of the time, LOL) & adequately capitalized accounts.
If you want to run alongside those operators you’re gonna need to stay alert every second you’re active in the marketplace, if not - you’re fish food!
Reliance on a single factor (an indicator, a specific price bar or a random price pattern etc) won’t cut it out there I’m afraid.
However, if you design & test a combination of these features, possess more than a decent awareness of reaction zone activity (s&r) & hold a tight rein on your patience & discipline - then you stand more than an evens chance!
Wow just found this post from Tess.
This sums up everything I was trying, badly, to say.
Hi There Arvydas.
When reading the comments from you all about Candlestick pattern, I get very interested. I would realy like a copy of that book. I’ll send you an message via Skype. (skype name: perbrasil)
Thanks,
Perfx:)
To Masterplan :
If you want to find out in detail the approach I am trying to use, then go to the thread…FOREXTOWN…“Indicators for scalping - please post here” by Iinzall.
I have several posts on this thread complete with full charts and commentary. I leave nothing out for your understanding.
Others post questions here to which I post answers and I hope they are helpful.
Hope this helps,
Kind Regards, Tymen Wortel, Perth, Western Australia.
I am sorry, I do not understand what a skype address is.
I only understand an email address or direct contact by private messaging on this forum.
The following are the patterns that I use - I use no other.
These patterns are the [U]strongest [/U]candlestick patterns and, therefore, the most reliable.
[B]short[/B]
Evening star/evening doji star.
Dark Cloud cover.
3 inside down.
3 outside down.
Now for [B]long[/B]
Morning doji star [U]only[/U]
3 white soldiers.
3 inside up.
3 outside up.
Of all these patterns, the 3 white soldiers pattern seems to be usable anywhere, not just on the Bolinger band extremes.
and what about engulfing, piercing patterns, hammer? aren’t they strong reversal signals?
So Tymen, do you use B.B.'s too?
To Arvydas :
I have discovered that engulfing patterns and piercing patterns in Forex are only [U]moderate [/U]probability patterns (surprise!)
The hammer, hanging man and other single line patterns are very risky, because the price could simply continue the way it was going.
The 8 (4 long, 4 short) patterns are more than enough to keep you going - in fact, sometimes it is too many patterns !!!
To Dobro :
Welcome, how are you?
Yes I do use Bolinger bands extensively.
Please look and read in detail the thread…FOREXTOWN…“Indicators for scalping - Please post here” by Iinzall.
I trust you will gain much from the above mentioned thread.