THE JOY OF CANDLESTICK TRADING - a Learning Experience

[tymen1]

Originally Posted by FXCaribbean

Even if you're on your desktop, your DealBook still work. Then it download all the data. More charts = more data = more (traffic)lights.

Thank you for your reply.

I shut down Dealbook, had no programs running.
No antispyware updates.
I do not use an antivirus since I never go past either locked sites for trading or very high integrity sites such as Babypips.

I had trouble with Image Shack.

I shut that down so that I had absolutely nothing running.

Yet whole loads of kilobytes were either being sent or received.

Hmmmmmmmm!

I think I will speak with my ISP.

[Blaiserboy]

I greatly appreciate the efforts of Tymen1 and FxCaribbean to take the time and make the efforts to make this thread simple and detailed enough for us to learn...

Often people share their ideas without sharing the little nuances that make the thing work and that is frustrating to students.....

Personally , I am catching on to this system, not so much because of the work I have done, but because the presentation is so thorough.!

Thanks guys....

( attempted to exceed the 84 chart limit...... was punished. hehehehe, so today I will clone Tymen1's workspaces..)

[Ray_1]

Hi tymen1,

Thanks for your detailed guidance on setting up of DealBook. Now trying to setup mine same as yours.

I always only trade two currencies, EUR/USD and USD/JPY. i like to know if I apply your method to these two currencies only will I be able to get a trade everyday as i dun monitor the four majors like tymen1.

[Deevz]

Wew! I just finished reading through the entire thread! I did it over something like 2 weeks... That is great stuff Tymen! You came up with excellent rules to enter trades!

Now there's only one thing I don't understand: why would we invert our MACD? According to your sayings, the resultant points at where the price is heading... Inverting the MACD will invert the y axis component of the MACD vector and give us a bad prediction, no? The regular MACD vector should point downward when the price is going there anyway. And then, the y axis component of the BB vector isn't inverted, so isn't the exact mirror calculation of the short resultant.

Yea, that's a lot to think about . I'm not trying to prove you wrong here Tymen, just want to remove any confusion .

Keep up the good work!

[Blaiserboy]

Deevs

Re read about the use of the Macd and you will see that the two are 'colour coded' green for long entry and red for short entry......

I think that may clarify for you

[Deevz]

Originally Posted by Blaiserboy

Deevs

Re read about the use of the Macd and you will see that the two are 'colour coded' green for long entry and red for short entry......

I think that may clarify for you

I know that well, but I think you didn't get my point, no pun intended.

Just saying: If the resultant predicts the direction of the price, why would be have to change the way we calculate that resultant when we go long? The price doesn't know when we want to go long, hence it should still obey to the former rule.

Edit: Btw, I am a student in sciences, so I try to understand the logic of things.

May the pips be with you!

[Blaiserboy]

I think if you re read that area of the thread that the answer will appear to you.

Perhaps your scientific approach has confused you a little.

[Deevz]

This is what I've read:

Again we set up a 5 minute chart with the Bollinger bands and the Keltner bands with period 4, factor 1.

But the Di Napoli MACD, as it stands, will not work.

In its normal state, we use it for short entries.

We need to set up the Di Napoli MACD for long entries.

This is done by turning the MACD upside down.
How do we do this?

First, by finding what the values of the Di Napoli MACD are.
They are :

long moving average = 17.5185 (17.52)
short moving average = 8.3897 (8.39)
signal = 9.0503 (9.05) - not needed.. Make this one invisible if you can.

To turn this MACD upside down we invert the values, as follows.

long moving average = 8.3897 (8.39)
short moving average = 17.5185 (17.52)
signal - not needed

By doing this, we get an inverted MACD.

The red MACD is the original Di Napoli MACD.
Note that you cannot put the inverted values into the Di Napoli MACD.
You have to open a new MACD to put the values into.

The green MACD is the result when you put the values into inversion.

By doing this we are now ready to set up a 5 minute chart to trade long.

On the 5 minute "long" chart you have :

The Bollinger bands - standard values as before.
Keltner channel - period 4, factor 1 as before.
Inverted Di Napoli MACD - long period = 8.3897 and short period = 17.5185.

You can set both the MACD's on the same chart and expand/contract them as needed. (On the above chart, the candlestick chart is contracted or minimized - you can see the colour bar above the MACD's).


When it is time to enter a trade, we do exactly as before.
We draw or note the middle BB vector, then draw or note the inverted Di Napoli MACD vector.

The resultant will give us the best possible long entry price.

I don't see the answer to my question there. Perhaps you don't get exactly what I'm trying to say?

[condor]

I just finished reading the whole thread. What a learning experience! Thank you Tymen for your effort, patience and generousity. It is extraordinary.

Everything was so clearly explained that I had no questions until you suddenly introduced the UM. I don't see the wisdom in the 10 pip stoploss. Why not put it above (for a short trade) the possible retrace price? It seems like a guarantee to be stopped out, unless most trades are pip first trades.

My biggest challenge seems to be living in the Pacific time zone. I can't seem to find any way around having to stay up all night to catch the European session. If anyone knows an alternative, I'd really like to hear it!

Thanks again to tymen.

[VulcanClassic]

Originally Posted by condor

My biggest challenge seems to be living in the Pacific time zone. I can't seem to find any way around having to stay up all night to catch the European session. If anyone knows an alternative, I'd really like to hear it!

"Ay, there's the rub"

A difficulty for me as well since I live in the -5 GMT zone.

Pairs can move anytime but generally;
The /jpy pairs seem to move throughout the day because of the US / Asian sessions. Also, take a look back on your hourly charts; alot of the time you'll see a swing roughly the same time of day.

The European session seems to start moving on average from about 1am to about 12pm my time, (10pm - 9am the next morning for you). My answer is to get up at 5am and catch it till it settles down and then keep watching the /jpy pairs the rest of the day.(I'm lucky, I have free time at work).

However you are three hours behind me so you could stay up a little late to catch the beginning and then get up early to catch the end. One way or another, there will be sleep lost (gotta make a sacrifice of some sort to succeed). You just need to figure out when would be good for you.

Hope this helps