THE JOY OF CANDLESTICK TRADING - a Learning Experience

[yuv]

hi tymen. great thread

i just wanted to know that how important it is to have ur main charts period set to 25 minutes. coz i m using mt4 and it only allows 30m. does it really matter or it doesnt make a big differnce. if it does, are we looking for a slightly different strategy on best entry on 5 minutes.

oh bytheway, does anyone here know how to get 20 minute and 25 minutes period on meta trader. thanks

goood luck trading.

[VulcanClassic]

Thanks for the encouragement Tymen,

I really needed it because I've been getting slaughtered. I tend to enter too early and exit too late. Gotta get a grip on those emotions. Greed and Fear the evil siblings.

What I meant by counter trend is; if the overall trend is long on a larger timeframe (1hr, 4hr), would you take a reversal signal short on the shorter timeframe (5m-30m)?

Curious how many trades can you average in one session?
I seem to wait and watch, and nothing for a long time, so I take a bad one out of boredom.

Thanks again Tymen

[tymen1]

To Ray_1 :

Take note of what Max99 says. He is quite correct in saying that stochastics and moving averages are irrelevant.

Candlestick trading and indicator trading are very different. The first is a chart of emotions while the second is a chart of computer calculations. As such you cannot really mix the two - there is little common ground between them.

The Bolinger bands are a probability envelope that tells us when price action goes to an extreme. The BB are a lagging indicator like all other indicators. The lag in the Keltner channel is reduced because of the way in which it is mathematically constructed.

The 15 min chart is really too short - 20mins is about as short as you want to be above the "noise".

As a new poster, I feel that I need to take you in hand and contribute some useful tips.

Firstly, I would ask that you remain a person who can be moulded ie open to advice. People who are hardheads on this forum (there are some - I know who they are) pay for this by losing all or most of their money. Do not be in that group!

Now a list of suggestions in logical order :

1) Read again my post explaining candlesticks with reference to the magnetic field from physics.

2) Read also my earlier post explaining the advantages of candlestick trading.

3) Decide whether you want to be a candlestick or indicator trader. If indicator - then proceed to the many threads on this forum. They all use indicators.
If candlestick - then read this thread, starting from the beginning and read all the hyperlinks posted as well. This will take time but you will learn.

[tymen1]

Originally Posted by yuv

i just wanted to know that how important it is to have ur main charts period set to 25 minutes. coz i m using mt4 and it only allows 30m. does it really matter or it doesnt make a big differnce. if it does, are we looking for a slightly different strategy on best entry on 5 minutes.

oh bytheway, does anyone here know how to get 20 minute and 25 minutes period on meta trader. thanks

I traded the "cable " the other day with an engulfing pattern. The pattern looked highly dubious on the 20 min chart but was very clear on the 30 min chart.

More charts mean more patterns available but I am also finding that I do not make much use of the 35,40 and higher time frames. The 20,25,30 are important them maybe the 45, after that the 1 hour.

The 5 minute chart is always a 5 minute chart - it is constant.

I am sure there is somebody with the answer to your last question - because I saw someone specifically post on that matter - only I cannot remember where!

[tymen1]

Originally Posted by 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.

Congratulations on a good trade here Yuv ! Excellent start indeed. Waiting proves its worth every time!!




*

[tymen1]

Now to those exits.

To BossHoss and Yuv :

There are 3 ways to exit :

1) Grab 10 pips only (or less if it retraces).

2) Use your main chart and exit at the middle BB maximum.

3) Use your 5 min chart and exit when the MACD look like it has run out of steam eg trading short, MACD going down and then the MACD starts to curl back up.

I use (1) but any of these are good.

Actually, I do not use (1) so much as I watch the profit being made. My charting program (GFT) shows your floating profit/loss instantaneously. I have a set figure in mind. When it reaches or gets near that I close. (and watch ruefully as the profit continues to soar! )

But then I am safe!

[yuv]

in my last two trades i used exit no.1. because the price was falling faster than i thought thats y i took +20 instead of +10. have i broken any rules here.

[tymen1]

To Vulcan Classic :

Do not dispair !!

Firstly, thank you for answering the question posted by Codename - saves me the trouble. Your answer was excellent.

What I meant by counter trend is; if the overall trend is long on a larger timeframe (1hr, 4hr), would you take a reversal signal short on the shorter timeframe (5m-30m)?

Definitely not. I do not trade the 4 hour but anyway :

I trade the candle pattern. If it is an evening star, I trade it short as required by the pattern. The time frame is irrelevant.

If I see a good (must be good) piercing pattern, I trade it long as required by the pattern. Again the time frame is irrelevant. I do an exit soon after (~10 pips).

Curious how many trades can you average in one session?
I seem to wait and watch, and nothing for a long time, so I take a bad one out of boredom.

Patience there, Vulcan Classic!

It pays off. Read Yuv's encouraging post!

Go for only quality patterns. It is better to leave the doubtful ones alone rather than make a loss.
If no good ones - do not trade! Keep your money!!

Looked at my records - a sample from last week :

In one 6 hour period :

2 trades USD/JPY - one evening star and one dark cloud. (both quality)
1 trade GBP/USD (cable) - an engulfing pattern (very good).
2 trades USD/CHF (swissy) - an evening star not traded (overlapped above evening star trade at 11.00am)......and......another dark cloud (good).

10 pips on all but one - this one only 5pips after spread. Nearly lost this one!

I cannot trade every day because my main income is from the Australian share market (which is not doing so well just now).

[tymen1]

I wanted to post on stop losses but it is late now so I must go to bed. The share market tomorrow beckons.

So I will post tomorrow in between.

[tymen1]

Originally Posted by yuv

in my last two trades i used exit no.1. because the price was falling faster than i thought thats y i took +20 instead of +10. have i broken any rules here.

No rules broken !

Just means that I need to revise my poor exit strategy!