The price movement unfolded as it did in the Candlestick Chart Pictures I have posted. Fact.
It was possible to have traded in (or somewhat close to) the Somewhat Perfect way as highlighted in these Candlestick Chart Pictures by the blue and red squares and circles. Fact.
We haven’t yet seen you post a live trade. Fact.
I still don’t know what the “trigger” is to enter on a candle’s close. Fact.
Nobody said one had to enter on a candlestick close. One can enter if and where one wants / decides to, which may be on or then after a candlesticks present Low or High price (which may become the candlesticks final Low or High price when that candlestick closes).
As stated, it was possible to have traded in (or somewhat close to) the Somewhat Perfect way as highlighted in these Candlestick Chart Pictures by the blue and red squares and circles. Ideas and suggestions about how to achieve this most fully and consistently are welcome in this discussion.
A good starting point is perhaps to observe price movement unfold on a blank candlestick chart, displaying big enough clear candlesticks such as in Candlestick Chart Picture A.
One can then identify the blue and red square and circle locations as they occur or don’t occur.
The smaller the time interval of chart used, the more candlesticks occur in a given period of time.
This thread is about striving towards reaching Somewhat Perfect trading performance, if possible. Whatever route/s taken and format/s involved in trying to and possibly getting there.
Everyone has a different perspective.
What one person ridicules, dismisses or tries to belittle, perhaps through an impatient, frustrated, closed and none objective mindset, the next person may give high praise to, or identify something of worth in it, have an aha moment, and come up with something worthwhile - Somewhat Perfect.
Metaphorically, turning a piece of coal into a polished diamond. We have a piece of coal.
I started watching this thread when it started because of the title. Then I could not stop checking in on it from time to time. You know: like somebody cannot really turn away from looking at a train wreck in progress or a burning building.
But I actually see, surprise of surprises, what the OP is trying to get at.
Here’s the problem as I am sure you are all aware:
No doubt the trades indicated on the example given would really be a pretty good or a “perfect” way to trade if you just stopped and reversed at the close in the direction indicated by the blocks. Problem: you are looking at the chart with hindsight. So the statement “it was possible to have traded” is invalid simply because you could not have known at the time that your current bar was to be the correct bar on which to stop and reverse at the close. It could have been or it could have been the next or the next and so on and so forth.
But (to the OP): you obviously have an enquiring mind and an idea in your head. Have you ever looked at an indicator called Parabolic SAR??? If not: take a look. Maybe a fresh pair of eyes could bring something to the table. You never know. Some of us spent years trying to tweak its parameters and improve its reliability and performance but to no avail. It lags and it whipsaws you badly in a range bound market. But the concept is not too dissimilar to what you are trying to investigate or create here. As I say: you never know i.e. fresh pair of eyes.
The PSAR (~0.008 - 0.2) added to a Renko (~10) Chart can work wonders…
EURUSD Long Term Chart (PSAR Settings included)
Have been running a simple PSAR Trailing Stop cBot on this for months…
Hey @objectively, I hope I understand most of what you are trying to achieve with this strategy build.
First of all the longer the TF the better the result should be. ie: 1H min - D1 max is were I’d be aiming.
I applied a tweaked version of the Parabolic SAR using your system and backtested an automated strategy based on “per candle”. Overall it works with tight risk management in place ie: R:R 1:3.
Generally the strategy will have price either move straight to a TP or whipsaw to the SL so the R:R formula will come into play. You may win ~6 out of 10 plays (tested on the D1 TF) which a 1:3 RR (or greater) will return a profit. (Below EURUSD D1 Chart EUR-Purple / USD-Blue)
There is an indicator in existence that uses a similar strategy on each candle, I don’t know the name of it, I believe I saw it on the MQL5 site. It will have numbers situated under each candle which I think indicated the probability of the next candle’s direction… which takes me to Heiken Ashi Candles.
This is another possibility you can research. These Candles (not an Indicator) use the value of HLOC/4 to give the value of the start of the next candle. check the HK Candles out…
Hope this might help, Cheers.
That is very interesting.
I have never looked at a Renko chart to be honest.
Very interesting indeed.
And a fine example of having a new pair of eyes taking a fresh look at an old problem and finding a new solution.
Thanks for posting.
Who knows. Maybe with some encouragement and a mind devoid of preconceived ideas the OP does indeed stumble across something new.
I guess: never forget that people thought the earth was flat!!! LOL!!! Then again: anybody heard of The Flat Earth Society??? LOL!!!
Regards,
Dale.
I’m still trying to figure out any one thing that @objectively was getting at…
Got here searching for heiken ashi posts.
In my opinion, and for me, any chart based trading method that requires the addition of indicators to a chart, is not of any use and is therefore useless.
Candlestick Chart Picture D
Candlestick Chart Picture D above shows more could have, should have would have trade opportunities.
It shows the best places to have entered or stop and reverse entered to have gained up to the maximum of available pips profit that became available from live price movement during these candlesticks.
Anyone should be able to easily - recognize this and identify these (what have occurred in the distant or near past) for themselves on a candlestick chart.
Applying this to live price trading and guessing/predicting live price movement accurately enough and often enough to make enough pips profit overall is possible.
In my opinion, a successful live price trader is able to consistently make enough pips profit overall, with the minimum of effort time and difficulty, while limiting risk with an appropriate stop loss.
Have you traded any of these yourself? It would be helpful if you posted live trades so we can see how they progress
That is not necessary.
Think it through.
I’ve got better things to do with my time than spoon feed.
And besides, we all have to do it for ourselves.
I’m not encouraging anyone to do anything.
What I have pointed out is blatantly obvious, and for me the only thing of worth on any candlestick chart.
If anyone else finds it helpful - which in my opinion everyone should, great, if not, so be it.
And here I thought that you were attempting to strip away all the norms, maybe take afresh and untainted look at things, and maybe come up with something new. I even backed you on this earlier in the thread. But your response to @eddieb clears thing up on no uncertain terms. So actually all we have here is some or the other indicator that’s real accurate in hindsight and repaints to boot. And so far as I can tell: paints a red or blue dot or square depending oh whether it was an up close or a down close. If it could do that at the open of the next bar and be right: now that would be something. But it cannot and never will be able to do that. So good luck with that. Another waste of people’s time and energy evidently.
Again, just to clarify -
The Candlestick Chart Pictures I have posted on this thread simply show what to me would have been Somewhat Perfect candlestick Low and High price locations to have entered or stop and reverse entered at or as soon as possible after based on the profit enabling price movement that followed.
The blue and red circles and squares highlighting these price locations are not an indicator, they are simply screenshot annotations that have been added.
The candlestick charts are otherwise blank, without indicators on them.
I don’t trade using indicators.
My candlestick chart is blank.
I’ve highlighted where I would want to enter or stop or reverse enter, either at or as soon as possible after that circled or squared candlestick Low or High price.
I don’t post often as I’m busy. Too many pips to be made.
That has clarified things. Thank you. Goodbye.
I actually think I prefer the bots and fake accounts. At least you can see those coming.
As long as one is making enough pips profit, using whatever method one uses, that in my opinion is what matters. I have simply shared my approach.
Well, you really haven’t shared your approach, you’ve only shared your aspirations. I’ve told you this before but even that couldn’t prompt you to be more forthcoming.
What you’ve said is it would be somewhat perfect to enter short at the high of a candle or long at the low. But still not a word on how you would identify the high or low before the end of the candle’s period.
Actually, maybe I am wrong because you did say that all chart-based trading is guessing, so maybe you’re just guessing…
If you take a look at the other thread: that’s EXACTLY the methodology in use i.e. guessing and it’s detailed in as many words. But hey: apparently it’s profitable what with all the pips being made. So who are we to question. I’m just surprised that every new trader on this site isn’t lining up for whatever is drawing those squares and dots (maybe they are via PM).
