Adventures in candlestick trading

kohkohnut · December 13, 2009, 4:04pm

Hi Muthu

I do know how to draw circles. The problem is I have no idea how to mark out exact entry and exit points as requested by u in an earlier post.

muthusai2000 · December 14, 2009, 12:59am

My Apologies.

I did not understand your question; hence the miscommunication. I mark an approximate point that is close to the exit.

Regards,
Muthu.
Chennai.
India.

muthusai2000 · December 14, 2009, 2:32am

muthusai2000 · December 14, 2009, 2:35am

5m Entry/Exit

muthusai2000 · December 14, 2009, 2:50am

Main Chart - After Exit

Regards,
Muthu.
Chennai.
India.

kohkohnut · December 14, 2009, 3:25am

kohkohnut:

Hi Muthu,

I have a question for you here. I understand that you have a SL of 20pips for this particular trade. But what would you have done if price remained at around -10pips without going close to ur SL or ur entry price for an extended period of time of maybe 2hrs? Would you hang on to the trade hoping that it will go ur way eventually? Or get out with a loss because the trade is taking too long?

The reason I am asking this is because very often, I spot a pattern that looks very strong to me and I proceed to the 5min chart to do my entry. Most of the time, the trade will go against me after afew candles and starc bands start to turn against me. At this point of time, I always cannot decide whether to strictly follow the rules and exit when starc bands turn against me, or treat the turn of starc bands as a minor retracement before the big move in my favour.

With regards to this issue, how do u decide when starc bands turn against u? Do u take it as a sign to exit immediately or see it as a retracement before the trade moves in ur favour?

Very often when I treat it as a retracement, I will hang on for very long and incur even more losses because I am hoping that it will turn in my favour eventually. And when I exit right after the starc bands turn against me, I find that most of the time the trade would have been profitable if I had waited awhile more. Hope you can enlighten me regarding this issue. Thanks

Bump up for Mr Muthu to see

muthusai2000 · December 14, 2009, 1:56pm

Hi,

Sorry for the late reply, just came back from work.
Starc bands move with every tick. So sometimes i find it difficult to make a decision to quit " when they turn sharply against " It is very subjective as by the time we quit the sharp turn turns in our favor and changes direction in no time. Before I enter a trade i have PCI stoploss and if it coincides and small enough to match my mental stop loss say about 20 pips at the maximum, i let the trade ride. However, some patterns have a huge stop loss, especially when trading off 1 hr big candle stick patterns. In such a case stoploss is there just for protection and i have my mental stop at about 20 pips. If it goes beyond that i would want to quit. The last thing i want to do is trade HOPING it will turn around. However, the good news is when we trade text book patterns on near perfect favourable bbs, i found drawdowns are less and manageable and some times it just moves in our direction with very minimal drawdowns. Each trade is different and we derive satisfaction even in loss because we followed rules and move on looking for the next one.

Regards,
Muthu.
Chennai.
India.

muthusai2000 · December 15, 2009, 2:27am

Main Chart

muthusai2000 · December 15, 2009, 2:29am

5m Entry/Exit

kockneerebel · December 15, 2009, 2:31am

Nice trade Muthu
Dave

muthusai2000 · December 15, 2009, 2:32am

A quick trade here and exited once it went to mid bb.

Regards,
Muthu.
Chennai.
India.

muthusai2000 · December 15, 2009, 3:02am

Hi Dave,

Thank you.

Regards,
Muthu.

muthusai2000 · December 15, 2009, 3:23am

Main Chart

muthusai2000 · December 15, 2009, 3:27am

muthusai2000 · December 15, 2009, 3:30am

Regards,
Muthu.
Chennai.
India.

Toka · December 15, 2009, 4:43am

Hi guys

Just a quick message to say thanks for your continued posts.

As soon as I get things sorted I will resume posting.

muthusai2000 · December 15, 2009, 5:35am

Hi,

Most Welcome. I would love to see more and more charts from all you guys so we can all learn this method more effectively. Waiting for candles to be on Fire !!!

Regards,
Muthu.

muthusai2000 · December 17, 2009, 2:18am

Main Chart

A Risky Grey area trade here because of the way bollinger bands were. They are not perfectly flat. Especially the midd bb. Come from a very strong uptrend, we are trying to trade the reversal pattern. Lets see how it goes.

muthusai2000 · December 17, 2009, 2:21am

5m Entry/Exit

As expected this trade had a draw down, how ever the mid bbs were still in our favor on 5m, and eventually it broke in our way for a decent profit.

muthusai2000 · December 17, 2009, 2:24am

Main Chart - After Exit

A Grey trade not recommended if you are trading bigger lots.

Regards,
Muthu.
Chennai.
India.