Here is another view of the main chart showing how the price action developed >>>
By tymen1 at 2008-05-29
The price action went exactly as predicted - level. There is only limited trading opportunity in such a trade. And this opportunity is in the early candles after the evening star.
[B]Here is the 5 minute KC chart >>>[/B]
By tymen1 at 2008-05-29
The black vertical line is the opening of the 4th candle and the MACD and BB vectors are shown on their respective lines as well as in the yellow circle.
The pink resultant vector was slightly down and hence the best entry point is between the middle and lower Keltner bands.
A 1 amount short entry is made midway between these bands at 22
[B]Now let us go on from here.[/B]
[B]Now for the final chart in the series - another 5 minute chart. Very important notes are on the chart itself >>>[/B]
By tymen1 at 2008-05-29
This chart is very full. Lets go thro it :
The Bollinger bands are shown in blue, the grey area is now the Starc bands. The middle band is still a middle Keltner band. With the GFT program, you can mix and match all these bands as you wish.
The short entry point with 1 amount is shown again at 22
The green candles following show that the price action is going up and we declare a âretrace firstâ trade.
Now where is that retrace top point??
The Starc bands are going up (read important notes on the chart) and we find the retrace top where the candlle touches the upper BB. At this point the Starc also happens to touch the upper BB.
The 2nd amount is entered here at 48 and the computer averages the two entries to 35.
That isâŚ(22+48)/2=35 .
We must wait till the price action drops to 35 before any profit is made.
Then, as it goes down, well past 35, we[U] reset the stop loss[/U] to a spread distance below 35 eg set at 32 for a spread of 3 pips.
We now have a riskless trade and can go on with confidence.
Greywolf238 made an excellent exit at 06. This is the first point where the price action dropped below the lower Starc band.
Of course we could have gone further. The choice is yours.
Using the averaged entry of 35 and then exit both amounts together at 06, we have [U]2 amounts [/U]of 29 pips. (35-06=29)
That is, a [B]total profit of 58 pips[/B]. (2x29 = 58)
The initial stop loss was at 51.
Our initial short entry with [U]1 amount [/U]was at 22.
Now the distance from the entry to the stop loss is 51-22 = 29 pips.
That is, if we had lost this [U]1 amount[/U] with the trade going against us, we would have [U]lost 29 pips[/U].
Now the [U]profit[/U] was 58 pips.
[U]Loss[/U] potential was 29 pips.
So we have a risk/reward ratio of 1:2
This is excellent.
[B]I trust that the details of this trade presented here will be informative and of use. [/B]
Welcome back tymen, i hope all is well with you. Once again a very thorough explanation, much better than i could do.
Welcome back Tymen,
Hopefully, you will have good news soon about your case.
This thread is getting to be like Charles ****ensâ Pickwick Papers. Each edition gets more and more addictive! And you canât wait for the next release! lol
Itâs crack for Forex traders. lol 
OK, back to my studies here of candlesticks.
PS - WOW, this website censored the last name of one of the greatest writers of all time. :eek:
Obviously the bots did not receive a classical education :D:D
Iâve only just started learning about Forex and this thread is one of the most helpful things Iâve read yet!
Thanks so much for taking all the time to explain everything in such detail and with such enthousiasm!
I just want to add my thanks to Tymen1 for all of this info. I am only up to post 200 and my head has grown 2 hat sizes-that is not conceit, but info. I am still failing miserably, but there appears to be some lights at the end of the tunnel. the other responses are also appreaciated and so helpful. Just thought you might like to know that you are appreciated by someone who is not saying much.
Some soccer fans have a problem on some forums posting about their beloved S****HORPE UNITED football club.
tymen1,
I have a favor to ask. Can you please post the date,time and timeframe of the evning star patterns you are using for examples. Iâm having trouble making out the date from the pictures on my crummy laptop screen and I would like to follow along on my own charting software.
Thank you for all the hard work you put into this forum!!!
Thanks TymenâŚwell, I leave the board for 2 weeks and now I have a lot of catching up to doâŚLOLâŚ
Two problems after a month of demoâing: choosing âqualityâ patterns and patienceâŚ
My thanks to Greywolf238, BrianSNJ, 4xStar, Croccifixio, Jaguar1175, Pseudo Straddle, Chewbacca and Dank for all your continued support and contributions.
You are the people who make this forum work.
I shall meet Chewbacca"s request to post more time details of my patterns.
They come from the Perth timeframe which is 8 hours ahead of GMT.
From there you can work out where you fit - or else download the world clock from the hyperlink below :
My court case is not yet finished. It has a second session this Thursday 5 June, when I hope it will be finished.
So it will be light posting from me till then.
While I am away, it is time for all you readers to do some homework :
(typical teacher I am - giving homework!!)
So here we are :
[B]Exercise 1[/B]
Would you trade this pattern A? Give reasons for your answer >>>
By tymen1 at 2008-06-02
[B]Exercise 2[/B]
Would you trade this pattern B? Give reasons for your answer >>>
By tymen1 at 2008-06-02
[B]Answers will be posted after Thursday.[/B]
After doing many charts, I have noticed that [B][U]the ability to recognize fine [/U][U][/B][B]differences in the patterns and the BB/KC/Starc bands is greatly improved by colouring in the bands.[/B][/U]
[B]Exercise 3[/B]
So I ask you to screen print a chart such as below and send it to Microsoft Paint - a Windows program.
Then colour in every part - and do not miss even one pixel!!
This is done by clicking view/large size.
Re-colour even the bands!
This may sound like complete nonsense, but, believe me, it works.
Here is a sample of a KC chart and then a sample of the final result.
You do the same!!
First chart >>>
By tymen1 at 2008-06-02
And now, the final result >>>
By tymen1 at 2008-06-02
It is very important that you do the work [U]accurately [/U]and do not [U]miss even one pixel.[/U]
[B]If you do this a few times you will notice how much better you can pick small but important differences in the patterns.
Your sensitivity to the band positions and shapes will greatly improve and thus your trading will improve.[/B]
I thought it was time I shared a trade I did today and I am hoping to be critiqued by TYMEN and others here.
I have included pictures of the charts. Eur/Usd on a 55 minute chart with a yellow circle we can see a Morning Doji(maybe?) Star and I decided to take advantage of it on my DEMO platform.
It is on the bands, the wicks go past the bands and the 3rd confirming candle is strong. I felt the downward trend had been a long, good one. The BBs were spread apart nicely but not extremely wide which concerned me.
I used a 10 minute chart for entry. The Resultant told me something near 1.5522 was a good number.
On my 5 and 10 minute charts, my BBs are blue and my KCs are red.
Interestingly if we look at the 45 minute chart, we could have seen a moderately strong Engulfing pattern between 8:30-9:30am. I am not sure if this truly qualifies as a Bullish Engulfing pattern. I thought so. Tymen? Any comments? 
I was not signed on yet, since I had some business calls to make. I did catch the 55 minute chart and was still able to make a nice 15 pip profit. I had a stop/limit order setup to take profits of 10 pips but my DEMO platform never filled the order, so I canceled and took a market order 5 pips higher than I wanted. I got out at 1.5537âŚeven better! lol
Here are the trade details exported from EFX platform.
Time Order ID Message Event
10:42:07 0yp0r2s:2nbb-00 Buy 100000 EUR/USD @ 1.5522 Limit on MBTX [expiring: 9/1/2008] (100000 traded at 1.5522)
10:45:47 0yp0r2s:2qaa-00 Sell Short 100000 EUR/USD Stop 1.5512 Limit 1.5532 on MBTX [expiring: 9/1/2008] Cancelled GTC
11:04:35 0yp0r2s:371r-00 Sell 100000 EUR/USD @ Market on MBTX [expiring: 9/1/2008] (100000 traded at 1.5537) Filled GTC
11:04:44 0yp0r2s:371r-03 Sold 100000 EUR/USD at 1.5537 Executed
Now, please, comments.
Does anyone think this was a good trade and followed the rules of Tymenâs system or was this a bad signal?
My last picture is one of my Dealbook workspace and how I have it set up in case someone is curious. Also, I use Techsmithâs SnagIt for screen shots and editing. Awesome program about $40 but does everything!
EDIT -
Sorry the pics did not come out as nice as I had hoped as thumbnails here. Below are links to ImageShack. Nice, big 1610 x 1050 shots!!!
5 minute http://img127.imageshack.us/img127/5875/eurusd5min622008vd9.png
10 minute http://img119.imageshack.us/img119/2892/eurusd10min622008pi8.png
45 minute http://img119.imageshack.us/img119/1862/eurusd45min622008tz3.png
55 minute http://img119.imageshack.us/img119/2807/eurusd55min622008hc0.png
WORKSPACE http://img161.imageshack.us/img161/8634/dealbookworkspacego6.png
Hi Tymen!
I have a question about your posted screenshotâs. What image resolution you use for them? I copied your screenshotâs than from properties, seems they are of 908 * 567 image resulation but when i posted the screenshot of same resulations in my journal than they showed very dull result there. Only 700 * 600 suitâs little batter but not like yourâs:confused: âŚ
Iâll give it ago yaâll laugh to hard Iâll just turn my sound downâŚ
#1 I would probablly pass on.
a. Bolinger Bands VERY wide spread and pointing up
b. #3rd (red) candle Went down but buyers pushed it back up
c. Didnât close 50% or lower than previous candle
#2 I would pass on this one also
Iâll give it ago yaâll laugh to hard Iâll just turn my sound downâŚ
#1 I would probablly pass on.
a. Bolinger Bands VERY wide spread and pointing up
b. #3rd (red) candle Went down but buyers pushed it back up
c. Didnât close 50% or lower than previous candle
#2 I would pass on this one also , but better than 1
a. Pattern came all the way from lower Bolinger Band line to top to quickly
b. lookind at pattern looks as if buyers are getting weak. But still able to
push 3rd (red) candle back up almost 50% back seems risky...
That's what I see... Ken
ps. Thanks Tymen and good luck with caseâŚ
Here are my answers teacherâŚLOL
For Pattern A -
I am not sure if we are counting the timeframe as a factor or not. For me, this might be a weak time in the market (Eastern Standard), if so, I would not do it.
Without time as a factor -
I can see a nice, long upward trend. I like the spread of the BBs. It looks an Evening Star but the 3rd red candle scares me. I believe it is a âhanging manâ which signals reversal during uptrend. The bottom wick is very deep but the candle did not close LOW. There is enough in this chart to like, but a lot that gives me conflict. I would not trade it because of the uncertainty it gives me. Possibly, I would trade it if a 4th candle confirms a downward trend, but does that apply to the system we are learning here? My uncertainty leaves me trading this on a DEMO only and not with real cash.
For Pattern B -
No long, strong upward trend which means market may have plenty of strength to keep pushing up. This looks like a 20 minute chart. If so, that was a fast climb up and with the patterns we are looking for, the longer the trend the stronger the signal.The 2nd and 3rd candles are almost even in movement. 3rd wick does not pass wick of 2nd candle, the close of the 3rd candle does not surpass the middle of the 1st candle.
I do not like this at all and would not trade it.
TYMEN -
Would you have considered this pattern to be a valid âPiercing Lineâ. Explain please.
http://img240.imageshack.us/img240/4967/piercinglinevt9.png
Hi Tymen,
Great Idea giving homework. A true teacher.
A. I probably would have tried the first pattern. The wick says downward pressure may be coming. Risk is low with a tight stop and the half amount system so what the heck. Although more confirmation would be nice.
B. BB are relatively calm and there is a spinner but that wick is a little scary sitting at the same point as the previous wick. Definite support. Probably would have waited for further confirmation.
Canât wait for the answer.
