THE JOY OF CANDLESTICK TRADING - a Learning Experience

[Max99]

Originally Posted by VulcanClassic

Hi Tymen,

What do the Keltner locations signify ?

Also, is there a particular timeframe that vectoring works on best ?


Happy Easter Everybody

If I understand Tymen correctly, using the 5 minute chart, this is what happens with the price with these conditions. The table didn't turn out right in the post but I think you can get the point.

[b]Bollinger Band	     MACD		Keltner Channel 	Price[/b]
Up                      Up		     Upper			Up
Down                  Down		  Lower			    Down
Up	                Down		    Middle		      Level
Down	              Up	            Middle		      Level
Level	                Up		     Above Middle	    Slightly up
Level	                Down		   Below Middle		   Slightly down
Up	                Level		     Above Middle	    Slightly up
Down	               Level		   Below Middle		   Slightly down

[tymen1]

Hello again to all readers of this thread. I, like many of you, have been away on the Easter break. Now to answer all those questions :

To Allate :

No trading - not enough money. Save at least $1000 for a micro account and demo trade in the meantime, using the evening star as shown here on a 25min-half hour chart. Follow this thread carefully from the beginning.. Indicators as in this thread.

To Moneda :

The standard BB settings are : period=20, deviation=2.00
MACD (standard) : 9,12,26
Keltner (modified for this work) period=5, factor=1.


To VulcanClassic :

Max99 is exactly correct in what he says.

Each resultant points to a particular KC band. The price will go up and down in a 5 minute chart but that particular KC band is the best price you can expect to get for your entry.

The resultant vector of the MACD and middle BB vectors gives a particular KC band (middle, upper or lower.).

This particular KC band is the best price you can expect for entry.



(There, I have said it twice - I hope readers understand).

The 5 min chart for vectors is a good one (remember, indicators are delayed data) It works because a 5 min chart is your main chart chopped into bits. The delayed data, therefore, is not so significant.



Readers who still do not understand are asked to follow thro the complete live trade sample to be fully shown with charts.

[tymen1]

To Moneda :

I came across this trading simulator for MT4(free, nothing to join nor buy) that I think can shorten the learning curve significantly.. Let me know if you want me to post it here. Just trying to contribute to your efforts.

Yes, post if you so wish but please wait until I have finished showing the charts for this one trade - reason - I fear readers are becoming confused.

[tymen1]

Here is the sample live trade going from start to finish. I would ask that readers do not interupt till the charts are finished so that the flow of viewing will be smooth and minimize confusion.

I will start by posting the main chart again so that we can see where it all starts from.

Notes below >>>


By tymen1 at 2008-03-17

We are trying to get the great entry on the 4th candle and to avoid the poor entry.

Next post shows the 5 minute chart.

[tymen1]

Here is the first of a series of 5 minute charts showing how to get the great entry

Notes below the chart >>>



By tymen1 at 2008-03-17

This 5 min chart shows the standard Bolinger bands in blue and the Keltner channel fully in grey (done in Microsoft Paint for clarity).

Note that the middle KC band is not shown and the MACD not shown. Reason - these are earlier charts from last year and the later ones are much improved.

But I can tell you that the MACD was going UP.

You can see from the chart that the middle BB band is going UP.

Therefore, the resultant (the price) is also going UP.

The best entry we can expect is, therefore, at the UPPER Keltner band.

(Now if the resultant was say, level, the best entry we could expect would be at the middle Keltner band. And, if the resultant was say, down, then the best entry we could expect would be at the lower Keltner band.)

I have located the upper Keltner channel area with a big yellow dot.

But how do we get this price when the 4th candle started where the orange line marked begin appears ???

To get this price we use a technique that is well practised with experienced traders but newbies really have to learn this technique. It is very simple and given in the next chart in the next post.

[tymen1]

In this post I give the very special technique :















waiting




doing nothing





sitting on your hands

[tymen1]

This next post shows the result of waiting !

Notes below chart >>>


By tymen1 at 2008-03-17

By waiting and watching the 5 minute chart, we see that the begin candle has become a green candle and surged to the upper KC area !

This is really good news! We can now decide to enter since we know that the best entry we will get is near the upper Keltner band.

Wait for the next post - it shows what we do!

[loveforex]

Hi tymen1

I love your noneducational presentation on Candlestick trading, but since that style of trading is considered scalping and Oanda doesn't allow it,, can you please tell me which broker does allow scalping and is all around ethical broker, so that I can avoid signing up with a wrong broker again.

Thanks a lot.

[jlmac27]

Not to get off subject, but I am with Oanda and I basically scalp.I have not had a problem yet.Been trading live with them since like the middle of january.Is there something I don't know about them?I have talked to other traders as well that are usung the same method I use and without problems....????Sorry if I am distracting this thread tymen will erase if it is a problem...just curious..

[dobro]

I agree with you jlmac; I have been live since Jan2 and never had a problem with scalping. They do crack down on automated scalping or so i've been told. d