THE JOY OF CANDLESTICK TRADING - a Learning Experience

[tymen1]

STATISTICS

The Strategy

Advanced level
Full Starc band trade.
1st amount - 5 mini lots.
2nd amount - 5 mini lots.



The trade

USD/JPY
35 minute candlestick main chart with Bollinger bands added.
5 minute Starc band chart with Bollinger bands added.
3 Green Soldiers pattern.
Program used - GFT Dealbook.
Magnification - 72
Long trade.



Times

London open.
New York begins to open.

Traded at.....
Perth – 8.15 pm.
GMT – 0.15 pm.
New York – 8.15 am
Los Angeles – 5.15 am.
Sydney – 10.15 am.




The Figures

B1 = 1.1931
S1 = 1.1945
2 amounts = 28 pips.

B2 = 1.1940
S2 = 1.1957
2 amounts = 34 pips.

Total = 62 pips.
Compare with Basic level : 22 pips.

PCI - 1.1870
Risk/Reward = Irrelevant - trade was never under any threat.

[tymen1]

That now completes the formal education of candlestick trading on this thread.

I now invite final posts and questions :

[Mickeyl177]

Tymen,

First let me congratulate you on this mammoth undertaking. A truly enlightening read.

I have followed this thread for many weeks now and now feel ready to start trading using it.

I do however have a couple of questions:

1. It seems to me that the use of the starc band lines is really rather more of a guide as opposed to hard and fast rule. For example when the band is rising or dropping steeply and you are looking for an entry point, anything around the middle band seems acceptable (as opposed to touching or even piercing the outer bands). Would you agree?

2. Could you give us an idea of how successful this sytem is? For example out of 100 trades following the advanced level, how many trades would you expect to make say 10 pips or more from?

That's all for now.

I look forward to hearing what you have for us next year.

Enjoy your break and take care my friend.

Mickey.

[simplexX]

Thank you tymen for your work!
I started demotrading this strategy a few weeks before and I am really happy with it.

[tymen1]

Tymen,

First let me congratulate you on this mammoth undertaking. A truly enlightening read.

Thank you for the compliments Mickeyl177.

I must say that now that the work is complete, I feel that a great weight has been taken off my shoulders.
I had a really good sleep last night......

I have followed this thread for many weeks now and now feel ready to start trading using it.

I never know who has been reading my thread!!

I do however have a couple of questions:

1. It seems to me that the use of the starc band lines is really rather more of a guide as opposed to hard and fast rule. For example when the band is rising or dropping steeply and you are looking for an entry point, anything around the middle band seems acceptable (as opposed to touching or even piercing the outer bands). Would you agree?

You are exactly correct in saying that the starc bands operate more as a guide.
In fact you can be downright clumsy in your entries.
A little care with the exit, and you still get a profit!!

But, of course, the best pips are gained when you enter and exit at the extreme points of the starc bands.
Nevertheless, it takes some experience before you can judge when and if the price action is about to touch those extreme points.

The advantage of the Basic/Intermediate levels is that you can set your take-profit and PCI stop loss after you get your first amount and then leave the computer.

You cannot leave the computer with the Advanced level.

2. Could you give us an idea of how successful this sytem is? For example out of 100 trades following the advanced level, how many trades would you expect to make say 10 pips or more from?

This is a difficult question to answer - there are so many factors.

You may hit a series of really bad trades.
You may have little experience in using the starc bands.
Did you have enough sleep?
Have you picked a good pattern or did you pick a dud?

My presentation may help as a guide......

While doing these Advanced trades I had to simultaneously.......

Print screen and send to Microsoft Paint.
Edit, resize and save the file to a folder.
Send the saved file to Image Shack.
Then post the stuff on this forum.

With a lot of that going on while doing the trade, I found it hard to enter and exit properly on the Intermediate and Advanced levels.
Even so I found it just so easy to make more than 10 pips.
The entries and exits were just so casual.

And then on the Basic level, you get 10 pips immediately with the 1st amount.

So to give a final answer, on the Advanced level..........
............ assuming you are picking quality patterns with the Bollinger bands going in the right direction

then......

there is no reason why not all of your 100 trades would exceed 10 pips.

Enjoy your break and take care my friend.

Mickey

Thank you.

[tymen1]

Thank you tymen for your work!
I started demotrading this strategy a few weeks before and I am really happy with it.

All the best SimplexX.

Thank you for your work in producing the PDF.

I will be making special mention of you in the closing credits.

[damo989]

Thanks so much for this thread tymen. It has to be the single most educative material on FOREX i have read in my early days of learning to trade successfully.

I havnt contributed that much but i have been reading for a while (Before 100 pages) I dont think there has been a day that i havnt checked for updates from you on here.

Once again thanks for this massive informative thread, i wish you didnt have to go on holiday but i know summer is on its way in Perth, its taking its time to get here this year but

Have a good break
Cheers Damo

[cadarkitek]

Thanks for a great thread, I'm sure many has learnt alot from your teachings.

[Bocajunior]

Tymen,

Absolutely fantastic thread and excellent material. Great work and effort that you have put in here. A must read for any candlestick junkies out there.

I hope that even when the thread is closed, it can still be viewed? Am I right on this, as I for one would find it useful to open up and review some of your previous examples?

Thanks, well done, and enjoy your well earned rest.

Cheers
boca

[tymen1]

I hope that even when the thread is closed, it can still be viewed? Am I right
boca

Yes,absolutely.

Just click on the search tab and you will find this thread.
All stuff is stored permanently on Babypips.