Candlesticks and Time frames

If I want to trade multiple times throughout the day, looking for pip runs here and their…how far out should my time frames be…? I start with 1 minute, then go to 5min, then 15…or should I expand that a few more time frames…?

Also as I am studying the candlesticks a question occured to me…Do the specific pattern types mean something dramatically differnt in dramatically differnt time frames…? Ie…Trading in 1, 5 and 15 min frames vs carrying overnight to a few days…? I am a bit confused here.

Hey one more if I can…What other indicators that work real slick with Candlesticks…ie Parabolic SAR, RSI, MAfs…?

I really need some help, thanks in advance for your time
Bob The WeedEater Guy :slight_smile:

See Below!

If I want to trade multiple times throughout the day, looking for pip runs here and their…how far out should my time frames be…? I start with 1 minute, then go to 5min, then 15…or should I expand that a few more time frames…?

It depends on the time you have to watch the charts. I use 4hour / 1 hour so I don’t have to be in front of the computer all the time. Some people use Daily / 4hour / 1 hour (entry). It works out great if your at work and can’t spend much time on trading.

Also as I am studying the candlesticks a question occured to me…Do the specific pattern types mean something dramatically differnt in dramatically differnt time frames…? Ie…Trading in 1, 5 and 15 min frames vs carrying overnight to a few days…? I am a bit confused here.

You should really read, Steve Nison (Candlestick Charting Techniques - Second Edition) since he does an awesome job teaching candlesticks. I don’t leave home without it :slight_smile: . All the patterns mean the same thing on any time frame but they hold a lot more weight on longer time frames. For instance a nice hammer can form on the 200ma on a 5 min chart but it won’t be as strong of an entry as if it showed up on the 200ma of a daily or 4 hour chart. Take a look at some charts and you might see a dozen doji’s on a 5 min chart but the market ignores them, then you might see a nice evening doji star on the 4 hour chart only for the market to plunge an hour later. [B]Remeber to always wait for the candle to close before making a decision!![/B]

Hey one more if I can…What other indicators that work real slick with Candlesticks…ie Parabolic SAR, RSI, MAfs…?

That really depends on your system. I like using MACD and looking for divergences.

I really need some help, thanks in advance for your time
Bob The WeedEater Guy :slight_smile:

To Justleo7 :

Topgun_68 has already told you the right book to get - it is a large book, costly but excellent.

My avatar betrays my reason for posting - yes I trade candlesticks [B]only[/B].

I have totally given up on indicators - they are time delayed. Be inspired by the following hyperlink :
Candle Sheds More Light Than The MACD

Topgun_68 has already stated that the longer timeframes hold more weight.

A daily candlestick chart is more reliable than and hourly candlestick chart.
and
An hourly candlestick chart is more reliable than and 5 min candlestick chart.

But do not trade the 1/5 minute charts. You are just trading noise here. They are good for getting best entries and exits.

However, the patterns mean the [B]same [/B]regardless of time frame - they are [B]independent [/B]of time frame.

I trade 9 different time frames from 20 minutes thro to 1 hour. This gives me plenty of patterns over a 6 hour time period (I do not want to sit in front of a computer all day!). Going longer than 1 hour for me defeats my aim of daytrading. This also avoids the rollovers which I do not like.
No patterns - go for a different currency pair.

I trade the morning/evening star patterns as well as the dark cloud cover/piercing patterns.
I trade these on the Bolinger bands where, I think they are substantially more reliable.
This also means I do not have to worry about trend direction - it is automatic.

I trust I have been of help,

Kind regards, Tymen Wortel, Perth, Western Australia.

I know you guys must be kidding…are you?

[I]Oops, I’m busted. Your right I was just kidding.[/I]

It’s hard to respond to your post without some kind of sarcasm. In what sense do you think we are kidding? You must be a total non candlestick believer? If this is the case than why don’t you respond with your reasoning why we have no clue what we are talking about. Your vague message only makes you look bad. If you want to debate the good & bad things that go with trading candlesticks than I will respond but this is the last response from me on this topic unless you give a reasonable post.

The only bad thing I can say about candlesticks is that they should[B] NEVER[/B] be used solely as a trading tool. By themselves will make you broke!! However combined with price action, S&R tools like trendlines, PP, & fibonachi, they can be a valuable resource.

Topgun

r there any gaps in forex, as i was reading steve nison book, he sometimes talks abt gaps, but in my little experience i haven’t seen one.:confused:

Very rarely but I have seen some. When they occur it is usually around news times or Sunday when the market reopens. During the week the market is open 24 hours so thats why it is not as common as stocks. Maybe someone else can give a better explnation about why it happens but I think I’ve seen it 2 or 3 times in this year on the few pairs that I follow.

Topgun