THE JOY OF CANDLESTICK TRADING - a Learning Experience

[Ray_1]

Hi tymen1,

This thread is really useful to novice traders like us. I have benefited from this thread. I have wrote out a demo trading plan using 15 mins chart for spotting the evening star pattern and look for entry points using the 5 mins chart. However, my demo trading plan uses stochastic and moving averages, can you advise how can i apply these tools to trading the evening star pattern, instead of using BB?

[Max99]

Originally Posted by Ray_1

Hi tymen1,

This thread is really useful to novice traders like us. I have benefited from this thread. I have wrote out a demo trading plan using 15 mins chart for spotting the evening star pattern and look for entry points using the 5 mins chart. However, my demo trading plan uses stochastic and moving averages, can you advise how can i apply these tools to trading the evening star pattern, instead of using BB?

I don’t want to speak for Tymen but I think he’ll agree. Why would you want to use stochastics and moving averages instead of Bollinger Bands? They’re both lagging indicators and I’ve found no use for them. They will get you into a trade too late. BB’s are an excellent tool to go along with the candlestick patterns.

[BossHoss]

I have been watching and practicing this thread for a while now. I too want to thank Tymen for his unselfish sharing of knowledge. It's not very often that some one will offer information for others to earn Money with out a benefit to themselves. I would also like to add that it has been very obvious that you are a true teacher/Instructor. I have studied other threads that are near impossible to understand or comprehend. Again Thank You.

That being said the piece that I am struggling with in my trading is the exit point. I have read that Tymen gets his 10 Pips and gets out. Is there a good visual clue in our arsenal that would tell us when to get out. Trust me I don't want to be greedy. I am happy that I have found a system that allows me to get profiteable at all. Just thought with all the knowledge here we could come up with a good tool. The MACD doesn't do it for me at all! Thank you to every one here that is willing to help out their fellow man.

[yuv]

i have been also thinking about the exit strategy. hope tymen will give us the proper answer to that.

thanks for your efforts tymen. keep up the goood work, teacher.

[Ray_1]

Originally Posted by Max99

I don’t want to speak for Tymen but I think he’ll agree. Why would you want to use stochastics and moving averages instead of Bollinger Bands? They’re both lagging indicators and I’ve found no use for them. They will get you into a trade too late. BB’s are an excellent tool to go along with the candlestick patterns.

Hi Max99,

So you mean BB is a leading indicator compared to stochastic and moving averages? In addition, what are the settings for BB? 20 or 10? Pls advise.

[codename47]

i really need your help guys.i'm new in forex trading and also just finished babypips school.but i need little help.i want to make money.my objective for now is just to making to $500 daily.right now i'm using pivot point but its trickish.i need a trading system that is simple for a new student like me.please guys help me out.and i will ever be greatful.
thanks all

[codename47]

i really need your help guys.i'm new in forex trading and also just finished babypips school.but i need little help.i want to make money.my objective for now is just to making to $500 daily.right now i'm using pivot point but its trickish.i need a trading system that is simple for a new student like me.please guys help me out.and i will ever be greatful.
thanks all

[VulcanClassic]

Codename,

Have you read this thread from the beginning? It's a good system. There are also many others on this forum.

Nobody is going to tell you how to trade, only what works for them, that is for you to decide. It's going to take many hours of research and trial and error on your part.

Happy hunting

[yuv]

hi guys,

i just had two trades(usd/jpy & eur/chf) both successfull using this system.i had to wait for it alot though but worth the wait. it was just right. +20 pips each. good start for me.

keep up the goood work tymen and thanks for your thread.

[tymen1]

Ok, time to answer questions :

To VulcanClassic ;

You are doing really well - I admire your sheer perserverance! Starting at 4.30am - wow!

With this attitude, you will soon reach the ranks of Dale Paterson, Tonymand, Rhodytrader and Daydreamer65. They are much more knowledgeable than I am and could easily pick holes in my work!

Yes it is a fight doing those trades. Remember the comment by Tonymand. He said "trading forex is like wrestling crocodiles for a living".

Do you take countertrend trades?

Not sure what you mean here. I trade the candlestick patterns in an orthodox way.

It seems the entries are still valid but they turn around at or near the middle BB.

Yes they can and do! Remember that the middle BB is the average line, the line where all the trades gravitate to from the upper and lower bands. It is, therefore, a point where you can exit the trade.

Also, what's the longest you've had to wait for an entry?

This depends on the time frame (20mins-1hour). I have had some good entries and some lousy ones where the price really went against me. For a 20 minute time frame you have 20 minutes to fiddle with on the 5 min chart. After that the first candle is complete.
Likewise, you have 60 mins to enter on a 1 hour chart using the 5min chart.

I usually enter fairly promptly because the price meets the KC requirements. It is not a matter of how long you wait, but rather to get the correct price entry using the KC channel. But the longest I have done is, I think, the one posted very early on this thread where the entry on the evening star was particularly high.

I suggest that for 45min-1hour charts, a 10min KC chart may be more useful. This is because a 5min chart chops up a 20min chart into 4 pieces. A 1 hour chart makes 12 pieces - too many really. A more holistic approach would be to use 10 mins instead of 5. That gives 6 pieces.