O.K. everyone missed the ponit I was trying to make on the last post so I must have odne something wrong. Here is take 2.
Lets hope this picture is a little better if not someone tell me what I am doing wrong.
Here is a picture of the day chart of USD/JPY at 10/30/07 we have a “Doji”. This means that the market is in balance. The bulls and bears are at the same point. This is a period of uncertainty.
Rules of the doji. More reliable at forcasting a reversal on the uptrend, the longer the tail the more reliable, if there are a few doji’s in a row or close to each other then they mean nothing.
O.K. so we have a quick describtion and some rules. Now with just the info on this chart how and why would you make a play? I know that you want more information but lets just say this is your FIRST indicator.
If you do not know what a doji is just ask and I will explain. I plan on doing this with many other candle patterns.
From what I see I would buy with a s/l at 100 pips.
Reasons: 100 pip s/l is my system.
buy because
it has bounced 3 times off of 113.65
has 3 up days in a row the doji was a little down but I still trust it as a reversal.
We have higher highs. We also have lower lows but it looks like it will turn for an up trend.
The market has been sideways for a few months and it is time for a breakout.
Next I would look at MY macd settings, fibos, trend angle (just found this one) and lets not forget the support and resistance lines.
I would not even think of taking a profit until it hits the 117.65 mark. But I would move my s/l as it goes up.
O.K. what do y’all have to say? Remember this is just opinions and not advice.
I don’t see a chart on your post.did you intend to leave one?Well anyways here is tymens trading system I just drug it over here… Yeah I hear you about reading the book twice probably a good idea.I reread each chapter as I go along.But I am anxious to see where this thread goes…take care and good trading!
The patterns can be on either of the bb. Note that this is in the larger time frames - I use 20 mins thro to 1 hour.
On the 1/5 mins timeframes the candles could be anywhere. I use the middle band (the average ) to estimate a trend.
Now say the candles are on the bottom bb of the 1 min. They can only go up at this point and waiting will give you a much better entry. Check with the 5 min.
Judicious checking of the 1/5 min timeframes will allow you to decide whether to enter immediately or to wait for an improvement.
For complete saftey I take no more than 10 pips total from the bottom of a morning star pattern. This may happen within say 4 candles of your timeframe. If your entry is higher then you can take more pips. With good leverage you can make your money extremely rapidly this way. Once the trade is closed you move on to the next pattern.
hey Bazooko,
i did not see the chart you ere taliking about, but i like this thread, and will follow it, hope you will post the chart and futher discussions so those of us who based our templates on candles can have a grasp and direction. :)
Lets hope this picture is a little better if not someone tell me what I am doing wrong.
O.K. what do y’all have to say? Remember this is just opinions and not advice.
OPINION
Maybe it is the question which needs sorting out.
A doji in itself is just a trigger, a signal for the trader to
pay closer attention. Is it a morning star forming, evening star etc?
at what level is it? What S/R levels is it at? Are we in a strong
uptrend? Momentum?
I have just watched a doji print on a chart, it has grabbed my
attention for 15mins, I am waiting for the next candle to print,
in the mean time (even though I know all the levels) I am re-checking.
Is it time to jetison the trade? Is it time to continue? Should I go long/
short?
I may not know for maybe another 30mins.
The longer a potential trade carries on the more confirmation
is being acquired.
Also remember being “flat” is a positon in the trading world,
you ain’t winning nothing, but also you ain’t losing anything either.
It is better to be out of a trade wishing you were in,
than be in a bad trade wishing you were out.
YES, YES, YES Thank you daydreamer this is the type of info I was looking for! As far as the picture, I get the picture it didnt load for some reason. I will post it in about 9 or 10 hours. I’m at work and I have a game tonight so it will be there later, for now you can just check out your own charts look at USD/JPY day chart and the doji was 10-30-07. Or just post your own candle.
O.K. here is the chart I promissed y’all, so GET OFF ME BACK! This one is a little easier to see. If you want a blow up let me know and I can put less days in the chart.
