Well this thread on candlesticks is now here as promised. Indeed it has had a long gestation period. I have prepared many charts beforehand especially for this thread.
Now this thread is for all to post and all ideas are welcome.
Like everyone else, I started out with conventional indicators and soon became frustrated with many losses on forex. I already knew about candlesticks from my share trading and it was only a matter of time before I looked at and studied candlesticks because I was losing with indicators.
Candlesticks give up to the second information whereas indicators only tell you things upon the close of a bar. So candlesticks are completely up to date whereas indicators are basically delayed data.
Would you trade the sharemarket if your prices were delayed by, say, 20 minutes? NO WAY! So why do it with forex?
This thread is different from all others in that it it pictorial, that is, I explain things using charts and diagrams.
A picture says a thousand words.
This also overcomes the problem of people from other countries having difficulty with English.
The charts will be slowly posted, one by one.
Other posters are welcome to do the same so that we candlestick traders can all learn from one another.
[U]I want this thread to be a high integrity thread.[/U]
Coming back from my holidays, I am horrified to see blatant name calling on one of the threads on this forum and am wondering why the admin has not banned the posters.
I guess it is me that will again have to deal with it and alert the admin.
If anyone even hints at flaming on this thread, I will report them to the admin [U]immediately.[/U]
I look forward to good discussion, on topic, and strictly to the point without waffle.
Since I arrived on this forum, the number of new posters has increased enormously.
We know that forex is a closed loop.
That is, your gain is someone else’s loss.
In that sense I suspect that a lot of the posters here now will not be here at the end of the year.
We have no idea as to who will drop out and who will survive.
It is wait and see.
However, if you follow this thread and become a dedicated candlestick/price action trader, then you will have a powerful edge or advantage, and the probability that you will survive will be greatly increased.
I wish to make a number of modifications to the Levels.
For Basic and Intermediate, the modifications are superficial. A second multiple amount strategy will be added to these.
The Advanced level will be looked at in detail, in regard to the Starc bands.
Alterations will be made here to make entries and exits simpler and smoother without losing pips.
In this level, we look for a pattern, and enter 2 amounts upon the new candle.
The 1st amount is cashed out at 10 pips and the stop loss is brought to [U]break even.[/U]
The 2nd amoount can then reach its final target profit or
return to break even for zero profit. (leaving 10 pips profit on 1st amount).
This 2 amount strategy has the effect of giving us a profit edge, even over a long period of time - a win/loss ratio of [U]at least [/U]60/40.
A single amount trade strategy will produce wins but may see you lose money in the long run.
[B]That is how traders drop out of forex[/B] - they win in the first few months.
(Yay, I have a winning system!!)
But as time goes on, reality sets in, and overall there is a loss.
I will call the above 2 amount strategy… Strategy A.
[B]In my next post I will start the pictorial by introducing Strategy B…[/B]
Hi! Tymen, welcome
I am a newbee and eagerly awaiting for your posting THE JOY OF CANDLESTICK TRADING PART2. I have gone through your earlier post " The joy of candlestick trading part 1" and thankful to you for the wonderful posting. I think this new thread will enlight our knowledge.
Thanks once again.:):)
I have opened my live account a month ago and i have found that candlestick patterns are so important! I�ll read the first part of candlestick trading the faster i can, so i can participate here!
It is entirely your choice - depending on which you like best!!
If you think that there is going to be very little price action in your favour, with most of it retracing, then you would be better off with strategy A because it gives you opportunity to grab 10 pips before the price action backfires on you.
But if the trade shows good prospects, then strategy B is far better because it will give you a 2 amount profit as compared with only 1 amount + 10 pips for strategy A.
I know the starc band code for MT4 took a few minutes for me to find.
Here is the code for those that need it. Copy and past the code into a notepad document and save it as “Starc_Bands.mq4” under your MT4 indicators directory Ex. (c:\program files\MT4\Experts\Indicators)
Once save, open the file in metaeditor and compile, then finally it should appear in metatrader.
//+------------------------------------------------------------------+
//| STARCBands.mq4 |
//| Copyright � 2005, [email protected] |
//| http://www.fxfisherman.com/ |
//+------------------------------------------------------------------+
#property copyright "Copyright � 2005, [email protected]"
#property link "http://www.fxfisherman.com/"
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_color1 Red
#property indicator_color2 Red
#property indicator_color3 Red
//---- indicator parameters
extern int MA_Period=13;
extern int ATR_Period=21;
extern double KATR=1.5;
extern int Shift=1;
extern color UpperColor=Red;
extern color MiddleColor=Red;
extern color LowerColor=Red;
//---- buffers
double MovingBuffer[];
double UpperBuffer[];
double LowerBuffer[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_NONE,0,1,MiddleColor);
SetIndexBuffer(0,MovingBuffer);
SetIndexStyle(1,DRAW_LINE,0,3,UpperColor);
SetIndexBuffer(1,UpperBuffer);
SetIndexStyle(2,DRAW_LINE,0,3,LowerColor);
SetIndexBuffer(2,LowerBuffer);
//----
SetIndexDrawBegin(0,MA_Period+Shift);
SetIndexDrawBegin(1,ATR_Period+Shift);
SetIndexDrawBegin(2,ATR_Period+Shift);
//----
return(0);
}
//+------------------------------------------------------------------+
//| Bollinger Bands |
//+------------------------------------------------------------------+
int start()
{
int i,k,counted_bars=IndicatorCounted();
//----
if(Bars<=MA_Period) return(0);
//---- initial zero
if(counted_bars<1)
for(i=1;i<=MA_Period;i++)
{
MovingBuffer[Bars-i]=EMPTY_VALUE;
UpperBuffer[Bars-i]=EMPTY_VALUE;
LowerBuffer[Bars-i]=EMPTY_VALUE;
}
//----
int limit=Bars-counted_bars;
if(counted_bars>0) limit++;
for(i=0; i<limit; i++)
{
MovingBuffer[i] = iMA(NULL,0,MA_Period,Shift,MODE_EMA,PRICE_CLOSE,i);
UpperBuffer[i] = MovingBuffer[i] + (KATR * iATR(NULL,0,ATR_Period,i+Shift));
LowerBuffer[i] = MovingBuffer[i] - (KATR * iATR(NULL,0,ATR_Period,i+Shift));
}
//----
return(0);
}
//+----------scorpion@fxfisherman.com--------------------------------+
:o
