Thanks again Tymen,
“I want patience and I want it now!”
Hi tymen1,
Thanks for your guidance. I tink i will go through your thread all over again and learn more about candlesticks first before making any decision. 
Thanks For all your insight Tymen, Just found this thread yesterday. So I printed the whole thread and read it last night… I always have looked at my charts as through the eyes of the other ( players ) and look forward to more on that subject… Again Many Thanks for all your doing…
Tymen, by your humanity, your modesty and expertise. I was out of the forex for more than a month and to-day enjoyed reading all the last posts. I do not master it fully, but it all gives me a sense of confidence and trust. I truly find you a man planet earth needs dearly to get out of the mess we all created together.
Of all my profits I will start tithing 10% and more to life enhancing organisations. I will definitely place the gifts on the site, so we can all share a part of our earnings (more than 3/4 of humanity has NO access to clean water… 
What you do Tymen is definitely a tithe in your own way to us. Infinite gratitude. I enjoy a personal contact with you again (we started one last month) on my address: <[email protected]>. Belgium in E.U.
Bern
hay guys, i have been trading off this system and i hope you dont mind me sharing my trades. i just wanted to share it with you guys. the system is stress free and very easy to apply. but little bit of patience required though.
so here they are:
totall trades = 8(71 pips)
Losses = 3(-12 pips)
success = 5(+59 pips)
bare in mind the losses were because of my own fault of being strict with the stop loss. those losses went down on me as the system predicted but my stop losses werent according to the system. they were too close.
the successfull trades are all based on tymens great system which worked like a charm for me at least.
the only thing i get stuck with this system is the exit. i hope tymen could post about exits more in detail.
keeep up the goood work tymen and thanks again.
Hi tymen… again,
Just like to comment that this thread is the most informative one. A true learning experience.
I have some question which i can’t seem to find the answer in the thread. When the market going down, it is having a hard time reaching the upper BB so we’ll have a hard time going short. So bars and patterns will mostly be in the lower BB but going long means trading against the trend. Same as the other way when market is trending up. So, my question is, should we trade regardless of the market trend as long as the pattern is strong? Aren’t we going to get fake-outs when we trend against the market?
I had my first success with this system this morning:
[B]EURUSD[/B] evening star completed at [B]13:00 GMT [/B]on the [B]30 minute chart[/B].
I entered at that time using the 5 minute vector, which gained me a couple pips over open. I closed at 10 pip take profit and finished getting ready for work.
The candle came roaring back, but I was already out easy as that. The candle did turn back down, but staying in longer than necessary to take a small gain is where I think trading turns into a crapshoot.
This looks like it could be a lot of fun. It makes me think of fishing for some reason- you have to be patient and wait for the bait to get taken. Then you set your hook, there’s a short burst of action, and hopefully you have something on the other end.
Thank you again Tymen.
To TyrantRagg:
I certainly cannot speak for Tymen, but my opinion of the trading against the trend issue is this- If you are trading the big four (EURUSD, GBPUSD, USDCHF, USDJPY), you will notice that the USD tends to be the lynchpin. Since it is the base currency on two pairs and not the base on the other two, the pairs tend to move in opposite directions. In other words, the EURUSD and GBPUSD tend to move up at the same time that the USDCHF and USDJPY move down. Therefore, one set of pairs or the other SHOULD be at the upper BB when the other set of pairs is at the lower BB. What I plan to do is trade only one of the pairs that is at the upper BB. I believe the bull setups tend to be ‘shakier’ than the bear setups, so I will only concentrate on bear setups.
I hope this is clear and invite anyone else to comment. Please remember, none of this is exactly a science (and I’m certainly no scientist)!
Time for replies :
[B]To KENNETH LEE :[/B]
Gee, I hope your printer is still ok !! 
[B]To Ray_1 :[/B]
Take your time and make your decision carefully. All the best!
[B]To Bernbeach :[/B]
Thank your for your powerful compliments. I promise I will not let it get to my head!!
[B]To Yuv :[/B]
Yes, I think we would all love to hear about your trades - you will have several thousand viewers with all manner of suggestions pending!
[B]To Tyrant Ragg :[/B]
Do not dispair!
There is a candlestick pattern just for the lower BB. It is called the “piercing pattern”. You look for it when price action hits the lower BB. When you see it you then trade [U]long[/U]. Great success!
So there are patterns for going both long and short.
Shorts done on the upper BB - evening star, dark cloud and engulfing.
Longs done on the lower BB - morning [U]doji [/U]star, piercing pattern and engulfing.
Note that the engulfing works both ways.
[B]Just before I go on, I would like to draw all readers attention to a thread just posted. [/B]
It is given in the hyperlink below.
It is very revealing - only 3 posts. The first is a Newbie asking a question about indicators and the 2nd two posts are replies from two of the best experts on this forum.
The answers speak for themselves…a [U]must [/U]look !!!
http://forums.babypips.com/newbie-island/12136-indicators.html
[B]Now the next series of posts, although for everyone, are especially dedicated to Vulcan Classic who is determined and wants more skill and to Yuv who wants to know more about exits.[/B]
So I have found a trade this morning (Thursday 10), in EUR/USD to help answer the call.
It was a very powerful and dynamic [U]evening star[/U] trade with heaps of stuff in it that gives room for great teaching. The charts are [U]20 minute [/U]charts.
So I am going to go thro this trade step by step and cover many points.
I will cover especially :
- Quality candlestick patterns.
- How to set stop losses properly.
- How to do exits - more on exits.
There were 2 evening star patterns closely following each other. The first was excellent but I missed it because I was on the Australian share market.
That market is looking like one sick puppy at present! :eek: :mad:
The 2nd evening star pattern is the one under consideration. I did not feel that it was a really good one so I traded it on my demo platform - nevertheless, I had success.
[B]Without further ado, lets look at the features of this trade …[/B]
[B]Here we are at a series of posts concerning a EUR/USD evening star trade.[/B]
First considerations :
Look at the [U]20 minute [/U]chart below : Notes below the chart >>>
By tymen1 at 2008-04-10
The chart shows two evening star patterns highlighted in blue on the upper Bolinger band.
The first one is well tucked into the upper BB. The lead up is a series of green candles and the 3rd candle of the pattern is a nice long red candle with a minimal lower shadow (wick).
It is a quality pattern and, as such, produces a nice profit by going short, as can be seen in the red candles following the 3rd candle.
The first candle after the pattern is a green candle and, using the KC entry method, you would have entered short. You would not get the top but certainly you would get a good way up from the bottom. A good profit was certain.
[B]But what about the next evening star ? [/B]
[B]The 2nd evening star appeared to have a few problems with it. (20 minute chart).[/B]
The lead up to the pattern was good - better even than the first pattern.
But look further…(previous post).
The only part of the candle on the upper BB is the wick of the “star”. The rest of the star is below the BB. Logically the rest of the pattern is under the upper BB - not only that but [U]well under [/U]the upper BB.
As such, there is room for the trade to move upwards (long) against you. So that is a note of caution! :mad:
To further reinforce the caution, the 3rd candle of the pattern (red) is very weak (short or small). :mad:
The lower wick is longer than the candle body telling us that a degree of retracement upwards has occurred. Therefore, double caution! :mad: :mad:
So we need to be careful with this trade. As I said earlier, I considered this to be a risky trade so I did it on my demo platform.
It helps to have an indefinite demo platform - you can do all sorts of things with it.
[B]So now to the entry of this 2nd evening star pattern…[/B]
Good day Tymen,
I’m reading with interest.
I was in the GBPUSD this morning which was a good pattern I think. Then the news hit and the spike took out my stop and went my way afer all. Good entry but I stayed in too long. But that’s ok, I’m learning. I’m not using cash until consistently profitable.
I have a couple more questions:
Which platform are you using for demo? I’m on metatrader and don’t have 20 min charts. Those patterns you just posted aren’t on my charts. I can see where they were but the nice formation isn’t on the 30 min chart. Like to be on the same page.
Also, is a reversal pattern such as doji or morning star still considered valid if it closes on the opposite side of the middle BB?
Looking forward to your next post.
Jeff
[B]Here it is - the 2nd evening star candle pattern - 20 minute chart :[/B]
Notes below the chart >>>
By tymen1 at 2008-04-10
The evening star pattern is highlighted in light blue. The short entry candle (the last candle on the chart - red) opened at 40.
I got the best entry at 42, the very top. Ah, rigged you say. Nope, just lots of practice!
The GFT computer generated entry line is, therefore, shown on both charts at 42.
Lets have a look at the 5 minute KC chart to see how we did it.
By tymen1 at 2008-04-10
The 3 Bolinger bands are shown in royal blue, the [U]short [/U]entry with the big black arrow. The KC channel is shown in grey with the middle band in yellow. The MACD is underneath.
The MACD and middle BB vectors are shown in thick royal blue on their respective lines. A separate diagram is also drawn showing the pink resultant going slightly down.
The resultant then tells us that the [U]best [/U]possible short entry would be between the [U]middle [/U]and [U]lower [/U]KC bands.
Now, as I went to enter at 40, the candle went very rapidly down, then very rapidly up - too quick to do anything. Then it stalled at 42 - [U]above the middle [/U][U]KC band[/U]
Ah !! Fantastic!! Immediate entry short at 42, which was also the top of that candle !!
Staying calm when things are moving fast helps.
[B]Lets keep going. Next post.[/B]
[B]Just a quick commercial to answer Vulcan Classic’s post :[/B]
Please note that your trade was the “cable” ie GBP/USD.
My trade was EUR/USD.
I have a couple more questions:
Which platform are you using for demo? I’m on metatrader and don’t have 20 min charts. Those patterns you just posted aren’t on my charts. I can see where they were but the nice formation isn’t on the 30 min chart. Like to be on the same page.
You will have to work hard and get to program your MT4 to produce 20 and 25 minute charts - they are important and can show up small differences.
My own platform (live and demo) is the GFT platform but run thro a broker in Australia who allows the demo platform to be use indefinitely. I am probably guilty of link violation here to provide a hyperlink. If so you can send me a private message if interested.
Also, is a reversal pattern such as doji or morning star still considered valid if it closes on the opposite side of the middle BB?
Sorry, I do not quite understand what you mean here?
A morning doji star is traded long from the lower BB ie into the centre. You exit by going as far as you dare or set a target profit.
[B]Now back to that trade - next 5 minute KC chart :[/B]
Look below >>>
By tymen1 at 2008-04-10
We decided to stay on the 5 minute chart (a good place to see all the action). All started to go well, but then…
A green candle appeared and it was an engulfing green candle!! :mad:
OK, a 5 minute chart, a pattern here does not have much significance…or does it?
But the MACD is also starting to turn around !!!
Did we not say that the evening star was not properly on the upper BB but rather somewhat below it??
Does this not give room for the price to go up again - against us since we are going down (short) ?
Are we not now reaping the punishment for not choosing our patterns carefully ? :o
Sigh !..We are going to lose this trade !
[B]Next post.[/B]
[B]In frustration we turn back to the main 20 minute chart but as we watch the news only gets worse.[/B]
20 minute chart >>>
By tymen1 at 2008-04-10
Wow ! We have really stuffed this one up !! :mad:
The price has now gone right up and way past our short entry point of 42 and we are in the negative well and truely.
The top of the star is 55.
This trade is going to go right past our stop loss and shut down our hopes with a nice loss… Great work Bozo !!! :eek:
But did we set our stop loss correctly??..yes we did.
[U]How[/U]?..The stop loss is set 3 pips above the highest point in any pattern.
Or 3 pips lower in the case of patterns on the lower BB eg piercing patterns.
In this case it is set 3 pips above the star, which makes it at 58 pips.
[B]But caution ![/B]
Do you know how your charting platform works?
You must take account of your [U]spread[/U], and [U]different [/U]platforms do this [U]differently[/U].
On my GFT platform I can set a [U]short /U stop loss exactly and my trade will exit right there.
For example, if I set a short (sell) stop loss at, say, 10 pips, the trade will [U]close [/U]at [U]exactly [/U]10 pips.
On my GFT platform I have to set a [U]long /U stop loss at [U]one spread length [/U][U]higher[/U] to get a correct exit.
For example, suppose I trade EUR/USD - 3 pips spread.
I want to have a stop loss at 20, then I must set it at [U]23 [/U]pips.
Then if the price hits 20, it will [U]close [/U]my trade.
So if I make a [U]mistake [/U]and set the [U]long [/U]stop loss at 20, it will [U]close [/U]the trade at 17. :eek:
This is [U]not [/U]what I wanted - and you could lose out on great profits by making this mistake.
[B]So[/B]!..find out how [U]your [/U]program works with stop losses so you do [U]not [/U]make silly stop loss [U]mistakes[/U].
[B]Next post.[/B]
Tymen1 ; Again so many thanks for all your effort. I also trade with GFT and they allow you to run a demo as long as you like . When you have a live account. My demo is over a year old now. (Just for info). I will be setting this up on mine this weekend but probbablly place orders threw Oanda Tighter spreads .9 pip on EUR/USD… 2.5 Cable. Again Many Thanks PS. printer enjoyed the workout… Ken
[B]Well, we might as well die watching the 5 min KC chart. It is a quicker chart and we can perish quicker.[/B]
Here it is >>>
By tymen1 at 2008-04-10
Our entry is shown by the black vertical line and, yep, the price is well above our entry. (sigh).
These things happen - I knew I was just a loser!
Look at that MACD - going up like there is no tomorrow. Ahhrrrrgggg !
Oh…how rightous and just is our punishment for choosing a pattern not quite on the BB. We must…repent !!
Lets be cool…Yeah!..cooooooooooooool. Repentance is cool.!
So we lose - there will be another trade.
[B]Wait for the next exciting episode!![/B]
[B]A lot of posts here. You need time to read and digest them.
So next post will be tomorrow at earliest.[/B]
New guy here, thank you very much for this thread!
Im only on page 6 right now, but hopefully I’ll have time to get through it this weekend.