[B]So I am slowing down my pace a bit as a trader and leaning more toward swing trading.
I am choosing to trade 4 specific candlestick patterns on the 4hour charts.
These are BULLISH ENGULFING, BEARISH ENGULFING, DARK CLOUD COVER & PIERCING.
I will begin in demo and then live with small account.
Positive input welcome, the opposite for the opposite!
Posting requirements:- Respect to each trader![/B]
Usually I am also like with naked candle analysis, which this is simple in my view just using candlestick pattern on timefarme to analyze the trend market, but indeed sometime get fail and sometime get profit but still enjoy to use this method, so many candestick pattern but I am only use pattern to lok support and resistance area
Short AUDUSD DCC.
You are on the right track, I would suggest daily charts for your candle stick reversal signals and then go down to 4hr and 1hr to pin point your entry, learn to identify support and resistance levels, you will want to see your reversal signal happen at these levels, Always trade with the trend, put a 200 moving average on your 4hr chart and only go long if price is above this line and only short if price is below,
Good luck
Thanks bearish! I try to filter the trades I take by allowing for testing and using, what I consider, a more reliable timeframe.
Thanks Dennis3450! My only concern with the daily is larger stops. I will see how the ma works, but trying trade without indicators.
I don’t use any indicators , just the 200 ma to show direction of trend, as far as stops, think of it like the deductible on your car insurance, large deductible is less expensive. In trading a wide stop can be cheaper in the long run as tight stops will get hit often bleeding your account dry. Trading long term with small positions and wide stops has worked for me. Nothing will drive you crazy faster then being right about the trade but taken out with a loss because your stop was to tight.
Youre on the right track with what you are doing. throwing out all indicators and oscilators. but one hint please keep in mind that your methode you are trying to use works by far the best if youtake the bigger trend into consideration.
means:
the trend of the last weeks/months is up, you look only for trades which are long and use the candle sticks to find a good entree position… candlestick patterns like t fake out a lot pretending a downmove but then still go up in a uptrend and vise versa, pretending a up move but then still go down in a down trend. so be carefull.
I can’t do technical analysis without some kind of trend indicator, but I do employ candlesticks a lot to make my trading decisions. I mostly prefer hammers, inverted hammers, shooting stars and the like though.
+1 TurboNero
one final note, new traders tend to place their stops at the exact point that the market turns back in their favor. If you find your stops being hit often then, try using a Entry order placed at were you normally would have your stop, then wait for price to come to you, it works
Yes dianajs! Much less to think about. I kind of like the strength of the move given when these patterns work. I also don’t want to be trading every single pattern, so I am looking for the same thing every day. I believe its easier to narrow down.
Thanks much Dennis3450! I will definitely pay attention to that!
I am watching this interesting looking picture on the GBPUSD. If the failure continues a these two mother bars highs, at the close of the next H4 bar, I will short here.
I am now short this pair! Looking for an 80 to 180 pip tp. Maybe even 250pips if it really takes off.
They work for the most part, but one needs to look at the hammer,inverted hammer, etc. candlesticks on the larger time frames. For example, the ones on the 1-hour time frame don’t seem to be as reliable as the ones on the 4-hour and daily time frames.
Agreed dianajs! I am trying to fix most of my attention on the 4hour with glances at the daily for now.
