THE JOY OF CANDLESTICK TRADING - a Learning Experience

[tymen1]

Answer to Stage 2

Everyone is correct here - short right now with 1 amount - "click"

Trav72 has drawn an excellent and very accurate vector diagram saving me the trouble of having to do it.

The MACD is down, BB slightly up, giving a resultant slightly down.

Therefore, the best expected entry is just below the middle Keltner band.
But the price is above this band!!

So we take the bonus and enter short immediately with 1 amount.

The price thus clicked on is 107.93

[tymen1]

Stage 3

Well done to KENNETH LEE, Trav72, Vulcan Classic, Keitsuke and Sinn1.

Thank you all again for participating!

Now we progress a little further.
We stay with the 5 minute chart but the MACD is now gone and we have replaced the Keltner bands with the Starc bands >>>


By tymen1 at 2008-06-15

I have not shaded the Starc bands to make it look more like the real thing.

Our entry is shown by the black vertical line.

But our short entry of 1 amount has..........ooops.....shown a problem.

We entered at 107.93. Now whats this 107.92 ???

Well, we had a drop of slippage!! So we got in 1 pip less than expected. But never mind, 107.92 is still an excellent entry!!

The question

We see that, as the entry candle developed, it dropped from 92 to 88 at one stage.

a) Would you have exited at this point and called it a "pips first" trade?

b) If yes, why?
And if no, why not?



Be very specific with your anwers. Do not waffle. Remember, you cannot waffle with your decisions when you trade the real thing.
Treat this as though you were trading for real.

Answers tomorrow together with Stage 4.

[sinn1]

I wouldn't take profit yet.

I would wait until atleast 10pips before it becomes a 'pip-first' trade. This is because STARC bands are still going down strongly and Bollingerbands aren't showing any bad signs.

[KENNETH LEE]

I would hold for confirrmation before exiting. The candle is very indescive, Equal wicks top and bottom. The Starc is pointing down and BB is relativelly flat.

After strong Star pattern seems safe to wait for at least one more candle..

[VulcanClassic]

I would hold on as this candle seems to confirm the previous bear candles, plus exiting at 88 would only give a 2 pip profit, assuming it's a two pip spread. Also, it's only at the middle BB.

[Ray_1]

I will stay on with the trade as it has not reach my profit level or stop loss level. For me I will only exit if either stop loss or take profit level has been hit. Hope I am correct.

[VulcanClassic]

Ray

Good point about the SL

[ericoco]

Have not been able to answer the first 2 questions but hope to keep up now.

a) I would not exit now and i think i would call it a "pips first" trade.

b) I would not exit because the first 10 pips target is not reached.

[trav72]

We wait to to see if we can reach our first target to take profit of 10pips.
At price 107.88 we would only have 2 pips profit (107.92 entry, less 2 pip spread = 107.90 ,therefore price 107.88 we would only be profiting 2 pips.) We wait for ten pips or for the candle to pierce the lower starc band and bollinger band. Sit tight for now with price at 107.89 (1 pips profit).

I have reached my first milestone Newbie status...Thanks to this thread i am officially on the road

[tymen1]

Originally Posted by trav72

.......................
I have reached my first milestone Newbie status...Thanks to this thread i am officially on the road

Congratulaations Trav72!!

Soldier on!

You have given a very good anwer.