THE JOY OF CANDLESTICK TRADING - a Learning Experience

[KENNETH LEE]

Thank You Tymen : Yes i will setup mine Like that , Maybe once you have one chart setup and used the clone option you can just change time frame and save to cut down on extra mouse clicks.. Ken

[tymen1]

This picture below shows the first 4 time frams of AUD/USD



By tymen1 at 2008-04-15

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[tymen1]

Originally Posted by KENNETH LEE

Thank You Tymen : Yes i will setup mine Like that , Maybe once you have one chart setup and used the clone option you can just change time frame and save to cut down on extra mouse clicks.. Ken

Absoutely !

But make sure that you also allocate the correct currency pair to each tab/workspace.

[tymen1]

Originally Posted by concept

I was more wondering if I can use BB and a higher time frame say 1 hour or even 4 hours w/ KC and whatnot... I have a bit of patience thats why I am asking

Nothing to stop you !

Go ahead. Let us know how you get on.
Very keen to know !

For a 1 hour chart, use a 10 min KC chart instead of a 5 min.

For 4 hour, I suggest a 45/60 min KC chart for a best entry.

[tymen1]

As I am still unwell, I will make only one post for today - but hopefully a good one.

In the picture below, I have tried to show the perfect evening star pattern.

Notes below the drawing >>>


By tymen1 at 2008-04-15

The first candle is green and rises from a string of rising green candles as though one was climbing a hill. This 1st candle does not come near the middle BB, but is some distance from it - this is absolutely important.The 1st green candle of the evening star sets the benchmark as it goes thro the upper BB - or at least comes near.


The next candle forms the star, it is a very small bodied candle and it can even be a doji. Having the highest point, it definitely goes thro the BB.

The longer the upper wick, the further distance to the stop loss (lose more).

The lower wick does not go past the halfway mark of the 1st candle.

This halfway mark is shown by the pink line.


The 3rd candle is red. It continues from where the 2nd candle left off but then goes down. Ideally, the lowest point is below the pink halfway line.

The higher into the BB the set up is, the better.

Of course, there are variations but the picture is an ideal and this is what we should be looking for.

[VulcanClassic]

Tymen,

Since candlesticks show trader emotion - sentiment, do you find them equally valid on each timeframe?
It seems to me for a pattern on any particular timeframe to work, the majority would need to be trading it.

Curious

[cbarnett808]

Alright. Now that I can see Tymen's screen, I can completely understand the magnet analogy; just in that screenshot, I can see at least two formations (they may not meet our requirements). I hate to say it, but Metatrader appears inadequate for this approach- despite VulcanClassic's excellent find about converting timeframes.

[cbarnett808]

...Metatrader just doesn't cut it for this strategy.
Don't get me wrong, I like Metatrader and all, but Dealbook360 just blows it out of the water. Plus, Dealbook makes Metatrader look REAL old (NTTAWWT).
I trade at work during the day with the window open in the background, and this will save me a lot of jumping around between screens (when I'm supposed to be working). Plus, I really want to get my screen set up like Tymen's. The visual effect is very impressive.

VulcanClassic (and others), you really should download it and at least give it a go!

[VulcanClassic]

I agree,

I too have abandoned MT4. Once U get used to Dealbook, there's no going back. I've got a workspace for each pair and 9 timeframes in each, similar to Tymens. Too bad you can only load 83 charts before it quits.

I'm in the process of opening a live account to keep the charts.
I just want to give them the absolute min $250 to keep the charts and do my one live trade per month to avoid the "inactivity fee". There is pressure to deposit $2500. They want you to trade with them which is fair enough. But for now I just want the charts.

Trade on.

[Ray_1]

Originally Posted by tymen1

The first candle is green and rises from a string of rising green candles as though one was climbing a hill. This 1st candle does not come near the middle BB, but is some distance from it - this is absolutely important.The 1st green candle of the evening star sets the benchmark as it goes thro the upper BB - or at least comes near.


The next candle forms the star, it is a very small bodied candle and it can even be a doji. Having the highest point, it definitely goes thro the BB.

The longer the upper wick, the further distance to the stop loss (lose more).

The lower wick does not go past the halfway mark of the 1st candle.

This halfway mark is shown by the pink line.


The 3rd candle is red. It continues from where the 2nd candle left off but then goes down. Ideally, the lowest point is below the pink halfway line.

The higher into the BB the set up is, the better.

Of course, there are variations but the picture is an ideal and this is what we should be looking for.

Hi tymen1,

So for evening star pattern, the first candle must be a green candle, the second candle will always be higher then the first candle and the third candle must close lower than the second candle. So if none of these conditions are fulfilled, it is not considered a evening star. I have come across some evening star lookalike with a red candle as the first candle. Pls correct me to see whether i have understand the basic of an evening star.