THE JOY OF CANDLESTICK TRADING - a Learning Experience

[tymen1]

VERY SHORT TERM



By tymen1 at 2008-08-30


Knowledge Assumed :
Having read much of the Candlestick thread and being able to find quality patterns on the Bollinger bands.

Charts required :
Only the main chart with timeframe ranging from 20 minutes to 1 hour.

Restriction :
Trade only currency pairs with a maximum spread of 3 pips.




Method :
1) Set a PCI stop loss 3 pips higher/lower than the extreme wick of the pattern.
No rush here – as long as it is done before you enter the trade.

2) Enter 2 amounts on the open of the entry candle by clicking the Direct Deal ticket. (DDT).
(DDT preset to 2 amounts).
Watch the floating profit/loss window
It will be negative since the broker has charged a spread.
Now let….. - n = the floating profit/loss at this point.



3A) Watch the floating profit/loss window.
Close one amount with DDT when the floating profit/loss = + n
(DDT preset to only 1 amount).

3B) Watch the floating profit/loss window.
If after entry (2), it becomes -2n then close the trade for a loss.
(DDT preset to 2 amounts).




4A) Watch the floating profit/loss window.
If after 3A, It rises to +n again, close the remaining amount.

4B) Watch the floating profit/loss window.
If after 3A, it fall to zero, close the remaining amount immediately.

[tymen1]

THE LEVELS

Diagrams and Clarity –

For the sake of clarity, schematic diagrams are used.
The steps in the trade are shown by numbers.
The “W” sign indicates a point where a Break Even watch is needed.
Double lines indicate 2 amounts traded and single lines mean one amount.
Pink lines show a trade in negative while blue lines show the trade in positive.


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THE BASIC LEVEL



By tymen1 at 2008-08-30

Knowledge Assumed :
Having read much of the Candlestick thread and being able to find quality patterns on the Bollinger bands.

Charts required :
Only the main chart with timeframe ranging from 20 minutes to 1 hour.

Restriction :
Only the 4 major currency pairs should be traded.


Method :
1) Set a PCI stop loss 3 pips higher/lower than the extreme wick of the pattern.
No rush here – as long as it is done before you enter the trade.

2) Enter 2 amounts on the open of the entry candle by clicking the Direct Deal ticket. (DDT).
(DDT preset to 2 amounts.)

3) Close one amount with DDT when price action hits 10/12 pips away from your entry.
(DDT preset to only 1 amount.)

WATCH - Watch the Floating Profit/Loss in case of break even for the 2nd amount.
(Explanation is in Common Procedures above – methods 1 or 2).

4) Close the 2nd amount when it has reached a much larger amount or your target profit is reached.

[tymen1]

INTERMEDIATE LEVEL



By tymen1 at 2008-09-23



Knowledge Assumed :
Having read much of the Candlestick thread and being able to find quality patterns on the Bollinger bands.
Familiarity with the Starc bands.

Charts required :
1) The main chart with timeframe ranging from 20 minutes to 1 hour.
2) A 5 minute chart with the Starc bands on it.
3) The Starc retrace chart may be needed for reference.



Method :
1) Same as Basic Level.

2) Do not enter when the entry candle starts. Go to the 5 minute Starc chart and watch instead.

3A) Pips first.
Let the first 5 minute candle expire.

OR

3B) Retrace first.

4) Wait till the price action reaches the relevant Starc retrace point, then enter 1 amount.

5) Improve on this estimate and enter the 2nd amount.
(the computer will average the entries).

6 + 7) Now proceed as per Basic level steps 2 to 4 (with Watch included) to the end of the trade.

[tymen1]

ADVANCED LEVEL



By tymen1 at 2008-09-23


Knowledge Assumed :
Having read much of the Candlestick thread and being able to find quality patterns on the Bollinger bands.
Familiarity with the Starc bands.


Charts required :
1) The main chart with timeframe ranging from 20 minutes to 1 hour.
2) A 5 minute chart with the Starc bands on it.
3) The Starc retrace chart may be needed for reference.


Method :

1) Same as Basic Level.

2) Same as Intermediate Level.

3A) Same as Intermediate Level.

OR

3B) Same as Intermediate Level.

4) Same as Intermediate Level.

5) Same as Intermediate Level.

WATCH - Watch the Floating Profit/Loss in case of break even for both amounts.
(Explanation is in Common Procedures above – methods 1 or 2).

6) Exit the 2 amounts when the price action hits the relevant Starc exit point.


Repeat steps 4 to 6 until the price action on the main chart starts to reverse or the candles are too far away from the pattern.

[tymen1]

This now completes the formal presentation of

THE ULTIMATE CANDLESTICK TRADING METHOD - 4 Levels

in Microsoft Word form in 10 complete posts.

A PDF version is still to come.

This now completes my new material presentation for the year 2008

After this I will spend the posts giving examples of trades in the different levels to show how we actually do it.

I will be finishing my posting halfway thro November for our summer vacation to return in mid February next year.
If there is no new interest in this thread then I will close it completely and finally in November, this year.

[Ray_1]

Originally Posted by tymen1

[b]

I will be finishing my posting halfway thro November for our summer vacation to return in mid February next year.
If there is no new interest in this thread then I will close it completely and finally in November, this year.

No tymen1, please do not close down the thread. It is a very useful thread. I learnt a lot of candlestick stuffs from this thread. It is a useful thread for newbies who want to learn more about candlestick patterns. Pls continue your good work here.

[tymen1]

OK, Ray_1, I hear you.

But others will need to support you in this.

If enough people want the thread to remain open, then so be it.

In that case I will stop posting myself after mid November and return mid Feb next year.
The thread will remain open for others.

[tymen1]

I have previewed the PDF file of the candlesticks levels that SimplexX has created.

It is a fabulous work.

It will soon appear on this thread.

After that, I will confine my work to posting charts of trades illustrating the Basic/Intermediate/Advanced levels and answer questions that arise.

[tymen1]

Now I am due to go off air anytime with my old ISP.
I am transferring to a new one and will be back then.
This could take a week or so.

So if I disappear, you will know what is happening

[damo989]

You have to stay Tymen,

You contributions to helping the "rookies" has been unmatched.

The way you teach has been unmatched.

And your Generosity has been unmatched.

And this new Starc Band Entry is awesome,

You are an inspiration to me and many others.

Cheers Mate!

Hope the Perth weather doesn't entice you away from the computer to much

Hope to see you back again

Take Care,
Damo