THE JOY OF CANDLESTICK TRADING - Part 2

[tymen1]

At this point it is important that I do some trading and administration of my own.

I will return tomorrow to start dealing with the Advanced level and correct usage of the Starc bands in depth.
This is going to take a lot of postings and I suspect that this is where the majority of interest lies.



Right now I would like to add that it is a very good idea for readers and posters here to try to answer another's questions if you think you are sure of the answer.

This will have the following effect.......

1) Answering other's questions will make you learn better.

2) You feel that you are actually participating and not just a spectator.

3) It may lead you to important questions of your own.

4) It will take the load off me and allow me to do all the charting work (which is very labour intensive!!).

[husky_1]

I have a question for the group...
I have read through the first 30 and the last 30 pages of the original thread and something seems to be different as far as entrance strategy.

If memory serves me correctly there was an entrance strategy that used the MACD and BB mid band to figure out price direction. This then correlated to a target kelter line on the 5 minute chart. I did not see much mention of this at the end of the original thread, nor have I seen it used in this thread.

The past few trades now seem to point to utilizing the Starc band for entrance guidance, utilizing the lower starc if you are going long, and the upper starc if you are going short.

Did the entrance method get changed?

[tymen1]

Originally Posted by husky_1

I have read through the first 30 and the last 30 pages of the original thread and something seems to be different as far as entrance strategy.
..........................
Did the entrance method get changed?

Herein lies your problem.
If you had read the rest of the pages you would have clearly seen the changes made to the trading method.

That is why I said as a prerequisite in my opening posts on this thread.............

1) Read the Acrobat file :
It is in this hyperlink which contains the final finished method and also the correct use of the Bollinger bands.........

The Most Important Post In The Joy Of Candlestick Trading


2) Read on the original thread only pages 140, post#1420 thro to page 170.
These are live trade examples showing how to use the Basic, Intermediate and Advanced levels.

[husky_1]

Thanks Tymen, I will read through it again. I think I gathered all of the new data, I just wanted to make sure that what I was seeing was correct, the use of MACD and Keltner have been dropped.

[charlesmentor]

i am inviting you all to my blog where i will be giving daily forex analysis and strategies on how to make almost risk free money. i will be utilizing 4H chart, RSI, Bollinger bands, MACD and ADX. My pairs will be on only the MAJORS-EUR/USD,GBP/USD,USD/JPY & USD/CHF. i will also be making use of daily 20 pip signals, forex factory and daily fx. just keep a date and follow me as i take you a a sweet forex trade ride. your comments will be highly welcomed.

i use these strategies and they work for me well. i am starting the analysis in about 3 hours time.

Thank you!

[concept]

I am glad you are covering the starc bands with entrys, they seem to be quite sneaky to figure out sometimes. Getting the best possible entry is easier said than done I have found. Especially when Starc Up/Long and Starc Down/Short.

Any advice on how I can make this work better? I usually have had to settle for a entry between the .65 line and middle. Unless I can see the future then I can see where the better entry would of been.

[tymen1]

Originally Posted by charlesmentor

i am inviting you all to my blog where i will be giving daily forex analysis and strategies on how to make almost risk free .....

This post is completely irrelevant to this thread.

Stay away charlesmentor!!

[tymen1]

Originally Posted by concept

..................................
Any advice on how I can make this work better?

Coming right up Concept!!

[tymen1]

In order to start this section on the proper use of the Starc bands in the Advanced level, I wish to open with a motivational exercise to show you the sheer power of the system.....


Have a look at the following main chart of GBP/JPY below (25 minute) >>>



By tymen1 at 2009-02-25


You can easily see the trend - it is roaring upwards.
You would be a fool to trade this one short, right?

Now look at the highlighted evening star.
No short trade here is there?
Only a loss if you do trade this one short.



Well, lets have a better look.....


I have labelled the relevant prices are on the chart.



At the Basic level, strategy A.........

Would not even collect the first 10 pips since the trade fails to go that far and then fails to reach the profit target and instead proceed to the stop loss at 35 - loss of 2 amount of 22 pips each
[b] = 44 pips lost total..






At the Basic level, strategy B.........

Would enter the 1st amount but would fail to enter the 2nd amount 10 pips later and fail to reach the profit target and instead proceed to the stop loss at 35 - loss of 1 amount of 22 pips.
= 22 pips lost total





************************************************** ********
************************************************** ********





At the Intermediate level, strategy A.......
with a very good entry (22) using the Starc bands........

would collect the first 10 pips on the 1st amount but the trade fails to reach the profit target and instead proceed to the new break even stop loss set at entry - win of 1 amount of 10 pips.
= 10 pips win total.






At the Intermediate level, strategy B.......
with a very good entry (22) using the Starc bands........

Would enter the 1st amount then enter the 2nd amount 10 pips later but the trade fails to reach the profit target and instead proceed to the new break even stop loss set at 1st amount entry - loss of 10 pips.
= 10 pips lost total.


[CHECKED = CORRECT]

Take time to analyse this and understand.



Now lets look at the Advanced level.......

[trem]

Hey Tymen,

Been reading your original candlestick thread for the past few weeks. I wasn't around yet when you were posting the original materials. Am keen in reading your new one, and hopefully I can actively participate this time. Thanks for everything.

trem