THE JOY OF CANDLESTICK TRADING - a Learning Experience

[BrianSNJ]

Originally Posted by Piphacker

Hi there Guy's
Today at morning i entered for short on Euro/Usd after the formation of this candle shape in 4-Hour chart... I call this candle as PipHacker's favourate reversal candle... I enter for short onthe next candle after the formation of this reversal candle now see how much strong it's impact was on higher timeframe like 4-Hour as E/U After that dropp's for almost +65 Pip's!!!
PipHacker!!!

Hey PH,
Just wanted to drop a hello and say that I discovered your thread last night by accident. I saw that it related to candles and started reading it. It is a little hard to follow for me because I am learning candlesticks and patterns. Many of your statements are not clear or obvious to me but I am learning.

Take care

[greywolf238]

Brian,
If you are serious about candlesticks, I recommend one of Steve Nison's candlestick books, i'am currently reading Japanese Candlestick Charting Techniques, Second Edition from him and im learning alot from it, i hope to finish reading it over this weekend.
You can get it at a decent price from Amazon.

[BrianSNJ]

LOL You must have read my mind. I actually was going to buy some of his books...about 2 or 3 weeks before I even stumbled upon this thread. I have the 1st edition of the book you have. I am not going to bother with it. I am going to buy the 2nd edition.

I remember trading Currency Futures (on the Tradestation platform and broker) back in 2001 and stumbling across an article in Active Trader or some such magazine ....and the light bulb went off! I had been using regular OHLC bar charts but when I saw candles...I could see the advantages immediately.

Unfortunately, we got slaughtered in the futures market. Essentially, there really was no such thing as free demo accounts and charting! No resources like babyPips either. Also, the best we could get at the time was AOL dialup! UGGGGGGGHHHHHHH!!

So by the time we got wiped out is when I discovered candles. It was too late and the money was gone and I was frustrated. FORTUNATELY, most of the money lost was not mine but my friend and his brother's funds. I knew we were doing things wrong but they would not listen to me and we kept repeating the same mistakes. I was actually trading the EUR/USD when 9/11 happened! What a spike! I was freaking out and trying to get out. TOO LATE. A friend called me, told me to put the news on and then I found out what had happened! WOW.

I just kind of put trading on a shelf. For some reason, about 3 or 4 months ago the interest rekindled. Probably because I went from being a top performing real estate agent to barely surviving in this current east coast market.

I scoured the internet, read book reviews at Amazon, etc and got completely overwhelmed. One thing I knew for sure though....I WAS NOT GOING NEAR THOSE @#$%! CURRENCIES again!!! LOL

However, once I did my research, I could see clearly that Forex had soooooooooooooooooooo many advantages, it fit my personality and trading style, and I had received a hard learned and very expensive education in it years before so I was very familiar.

Honestly, the nail in the coffin was BABYPIPS. YES! This site calmed me down, cleared my head and pulled me together. The BP school really put it all into perspective. Exactly what the doctor ordered.

When I go live and make some actual money, I am going to buy the school PDF. Not that I need it, I just want to give back to this site.

[BrianSNJ]

Looks like someone did not read the rules about posting personal links.

[BrianSNJ]

Again. Amazing stuff. I have it down pretty solid so far.

To all the knowledgeable and experienced traders following and helping this forum -

I think one thing we need to discuss, incorporate, make rules for or consider is what to do at or around news times.

I know Tymen said it has not been an issue for him. Is that just luck or maybe his time zone? Will someone like myself on the East Coast USA get butchered?

My thoughts right now say avoid news times. News times throw out all the rules. It is all based on the impact of the specific report. Candlesticks, BBs, MACDs, Keltners or not. lol

Anyone have any thoughts based on wisdom and experience?

[Chewbacca]

tymen1,

I just finished reading the entire thread and wanted to say thank you for all the great information and hard work.
Looking forward to future posts!!!

[tymen1]

Hello I am back. My court case is ongoing and I have further matters on Thursday June 5.

So I will have limited postings until then.

[tymen1]

Thank you to the compliments from Keitsuke, 4xStar, Truzpip, Summerpip, BrianSNJ, Chewbacca and, of course, Greywolf238, who is doing a lot of hard work answering the questions in my absence and contributing a great deal to this thread.

[Piphacker]

Originally Posted by tymen1

Hello I am back. My court case is ongoing and I have further matters on Thursday June 5.

So I will have limited postings until then.

Hey WellCome Back Tymen Seems you are forgetting about PipHacker lol I may not be the one who is perfectly answering the questions here but love your thread
PipHacker!!!

[tymen1]

As a tribute to the good work of Greywolf238, I wish to look at a post he made regarding the trading of an evening star.

Post number #482, page 49.

This trade was made on a 30 minute chart. A 5 minute KC chart was used. You could also have used a 10 minute chart.

I will go thro this trade in detail firstly for the benefit of Greywolf238 and secondly all readers so that we may see any corrections needed and learn how to fully handle this trade.

Greywolf238 did not put down a stop loss so firstly I will set that in for you.
We will look at the "take profits" (TP), as we go along.

Here is the main chart >>>


By tymen1 at 2008-05-29

This chart shows the BB expanding rapidly. Remember this set up?
Stars here are fraught with danger, the price action usually goes level, and then if a second pattern appears, it will go down.

The candle is a good candle but with the BB as it is, we set the stop loss as shown at high risk. (red dashed line).