We’re about to.
I don’t know about the rest but this is the best forex course i have ever gotten.it has really improved my trading.
“ericoco: I don’t know about the rest but this is the best forex course i have ever gotten.it has really improved my trading.”
I feel the same, although I am not quite through it yet. I can’t wait to get started.
hi
were do i find the start of this thred
The top of page to right list all pages yours may say first, mine says last the last page is the begining. It brings it up to last page viewed…
I use candle sticks on 1H or more because I don’t have enough time to watch smaller timeframe
sorry, double post !
Hello guys. I found this thread 2 days ago and have been reading it non stop. Last week I went through the baby pips school and started trading demo accounts with the Cowabunga system. I seemed to make a lot of pips, but I also lost a lot! In the end my profit did not justify the hours and hours and hundreds of trades. So I started scouring the forums for a better solution, stumbled on this thread a few times and moved on when I realized my FXCM software had neither keltner bands nor starc bands and no way to add them.
Well two days ago I finally came back and started reading. 700 + posts and a LOT of brain overload later I decided to try my first trade using the system so far. I’ll post my experience in a bit.
I have to thank Tymen. You dedication to teaching this method is apparent, and the way you teach is amazing! Thanks for all the hard work, and for sharing, and for not trying to get us to pay for the info!
JJ
OK, my statements are less statements and more questions. I digested a lot of info in the last few days and I am sure I missed stuff. This post is an exercise to help me try and sort through all the stuff swimming in my head right now.
I searched and searched for a decent pattern tonight. I finally found one on the NZD/USD 40m chart. It looked like a pretty decent abandoned baby pattern, which according the the candle reference link Tymen posted, is a good sign of a trend change.
Now, I knew right away this would be a high risk trade because of the direction the upper BB band was traveling. This pattern would probably just send the action sideways for a bit, and if no other trend reversing pattern occurred than the price would continue rising. So I went into this trade knowing a small profit was all it would give me.
[B]A:[/B] I entered on the candle after the pattern was completed. My 5m chart with BB and keltner bands indicated a entry on the lower k band would be the best I could get. The price was sitting above the lower k band at that moment so I entered immediately at 0.7575. I set a stop loss 10 pips above at 0.7585.
[B]On to the 5m chart with BB and starc.[/B]
[B]B.[/B] My 1st amount: 0.7575
[B]C.[/B] Stop Loss: 0.7585
I knew almost immediately after entering the trade it would be a ‘retrace’ trade (correct term?). The first 3 candles of the price rise did not pierce the upper band of the starc, so I waited.
[B]D.[/B] Sure enough, the candle rose and pierced the top starc band. To be honest, I was staring in disbelief that it had actually happened like Tymen said, so I did not get the best entry. When I finally snapped out of my stuper I put in a second amount at 0.7580, which averaged out my total amount to 0.7577.
At this point I sat and watched both the 40m and 5m charts. I wanted to make sure on the 40m chart that I did not get to far away from the trend changing pattern. A few times on the 5m chart the price action came close to piercing the bottom starc band but did not so I waited.
[B]E.[/B] Price action drops far, putting me ahead 6 pips at that point. So I move my stop loss down to 0.7576.
[B]F.[/B] Finally the price action pierces the bottom starc band. I start looking around for the way to close the trade (I switched to the GFT platform yesterday so I’m not sure where everything is at). While I was trying to figure out how to close the trade the price action came back above the lower starc band. I finally figured out where I could close the trade and wanted to exit out of one amount to lock in some profit and than watch the second and final amount to see if it would go down. Unfortunately I could not figure out how to only close part of the trade and the time frame moved to the next frame!
[B]G.[/B] So the next candle opens below the bottom starc band. I think to myself I should move the stop loss down again, so I move it to 0.7574. Price action continues moving up and down, at this point I get the feeling I should exit but I think to myself “hey, I got a stop loss, let’s see what happens”.
[B]H.[/B] The price shoots up, and I think “oh well, at least I didn’t loose a bunch of pips on the first trade”. But the price action shoots up past my stop loss and nothing happens! So I scramble around again to find the open orders window so I can close the trade, and in the process lose 4 pips. Doh!
In hindsight I should have closed the whole position at F, since this was a high risk trade on a candle pattern that was probably only going to interrupt the upward movement for a bit. IF I had done that I would have made a nice 6 pip profit (not sure if that is before or after the spread).
Also, that 40m pattern was maybe not that strong, but really, I searched for hours tonight through 18 pairs and several different time frames before I found a pattern I was somewhat familiar with. I just wanted to give the system a go and see how she drove!
I have to say I am happy. A 4 pip loss is not that bad for the first trade trying to sort out all the information I have digested the last few days.
Please feel free to comment and correct me where I made mistakes. I plan on reading through the last 30 pages or so again but I wouldn’t mind some feedback from some of you that have been on here awhile.
JJ
Jimmy Jones,
wow… so you’re learning a new system and a new platform at the same time? I’m kinda in the same boat as you in that I just downloaded dealbook and went through the thread. However, I’m going much slower than you. I’m learning the platform first, then plan on making a few trades, but even then I’m planning on focusing on one aspect at a time. When I get good at recogizing patterns and entering a trade, I’ll focus on the exits.
doing it this way will hopefully keep things from swimming in my head as it has been these last few days reading through seventy or so pages of this thread.
good luck!
Yes I am trying to learn how dealbook works as well as this system that Tymen has come up with. I didn’t like dealbook at first but I am used to it now. There are still some things I don’t understand about it and Forex in general but this is not the place to ask.
In regards to Tymen’s system, WOW! Today I have had 5 trades, all wins. By going with the rules of the system I actually do not feel like I am gambling. With the Cowabunga system there was just the feeling that I was gambling instead of investing.
I do have a question and I could not seem to find the answer. In regards to the first entry after a quality trend changing pattern has completed; if I enter and the trade turns out to be a pip trade instead of retrace trade, then I am not trying to enter a second amount, right? I am assuming the 2 amounts idea only applies to retraces?
JJ
The 2nd amount entries are for retrace first trades or if we hit our 10 pip stop loss first… We will reenter with 2 lots at the retrace area,
In refrence to GFT system if you go to Parameters ,then trades, you can preset your order amounts and then when you want to close one lot. Just place 1 opposite order off the chart and it will re-average subtracting 1 lot…
Hope this helps… Good Trading:)
what is your BB applied to? Close?
thanks 
My bb is applied to the close, I believe that is what Tymen posted early on in the thread…
Greetings. 
I have had a good rest and a chance to do some of my own trading as well.
Making a number of successful, larger pip trades.
But I am sustained by my trading on the Australian stock market which makes me more money than forex trading.
So now we go on with the thread by looking at the engulfing pattern - long so as to compliment the short evening star.
The engulfing can, of course, be traded long or short. Just make sure it always sits on the Bollinger bands.
However, before we commence, answers to the wonderful posts put up recently are needed.
[B]To Neboxian [/B]:
Ericoco is correct - the Starc bands are only used on the 5 minute chart.
The only extra on your main chart are the Bollinger bands.
[B]To VulcanClassic[/B] :
Trav72 is correct - the dots do indeed represent short positions only.
But now that we are going long be prepared to be extra confused!!
Thank you [B]KENNETH LEE[/B] for answering some of the questions raised.
[B]To Pipso Facto, Maverick731, Nicolebobbin and Jimmy Jones[/B] :
Welcome to this thread!
I trust you will gain much and add many pips to your accounts!!
[B]To Ericoco and Pipso Facto[/B] ;
Thank you for your wonderful compliments.
I shall do my best to teach to improve your trading so that you make lots of pips!!
[B]To Maverick731[/B] :
Jimmy Jones is correct. The Bollinger is applied to the close. Settings - period 20, standard deviation 2.
[B]To Jimmy Jones[/B] :
You are learning very well. You have posted a very high quality, large, easy to see chart.
Well done!
I personally prefer white background - it has higher resolution - shown by setting the Guppy multiple moving average.
But if you like black (definitely more sexy), then go for it.
Still, can you quickly tell the difference between those light grey and dark grey candles?
I would submit that the down candles would be better off in red or orange - excellent fashion style with black and grey!!
I see that you are trading better now with your 5 winning trades.
Good for you.
There is still a problem with my [B]Ultimate Candlestick Trading Method[/B] when the price action drops like a bomb. Here 2 amounts are better.
But I have tried to accomodate all possibilities.
We will solve this problem in due course.
The problem with your first trade (the chart you posted) is that the pattern is [U]not [/U]an evening star pattern.
The first candle of the pattern has a much higher wick than the star. This basically rules the pattern out.
I say this to everyone, and I say it again :
[B]Always choose quality patterns only.
Do not choose just anything that resembles the orthodox pattern just to get a trade.
You will lose - or stand a very high risk of losing.
What good is that?
Wait patiently instead.
Be a sniper.
Pick your trade.
Then aim carefully…and shoot.
…and collect your pips!![/B]
[B]Here is my first post regarding the [U]long [/U]engulfing pattern.[/B]
By tymen1 at 2008-07-14
There are 2 drawings here.
The first is the traditional long engulfing.
It is the one used in [U]stock trading[/U].
The body-to-body is the critical component.
It is a stronger signal if the 2nd candle engulfs the entire range of trading, that is, the shadows (wicks) as well.
The [U]close [/U]of the red candle (bottom of red body) and the [U]open [/U]of the green candle (bottom of green body) are [U]apart [/U]from one another, that is, there is a [U]gap [/U]between them.
This is important.
It shows the extent of the powerful upthrust of the price action in the green candle, that is, the bulls have taken control.
If there has been a downtrend, a reversal here may be expected, and the price action now to go upwards.
The 2nd drawing shows the engulfing pattern in forex.
Here we [U]do not have gap action[/U] since the price is 24 hour continuous.
The close of the red candle (bottom of red body) is equal to the open of the green candle (bottom or green body).
These points are, therefore, level.
So how do we discern an engulfer in forex??
Well, we look to the wicks or shadows.
The lower wick of the green candle should be [U]longer [/U]than the lower wick of the red candle.
This shows that price action has bottomed out and a powerful upthrust has occurred to produce the green candle - hence the bulls are now in control.
Where the green candle is longer than the red one but the [U]lower wick [/U][U]relationship[/U] is not correct, [U]we rule out such a pattern.[/U]
So the following requirements apply…
- Two candles on lower Bollinger band, 1st one a bear candle (red), 2nd one a bull candle (green).
- Bull candle (green) is longer than the bear candle (red).
- Both body bottoms are equal.
- Bottom wicks - the 2nd candle, the bull candle (green), has the longer wick.
If these wicks are equal in length, other considerations are taken into account.
The length of the top wicks is not so significant.
The body-to-body relationship is the most important part.
The Bollinger band direction applies just as it did in the evening star pattern.
[B]That’s all for now. Tomorrow, some examples.[/B]
Great to hear from you again Tymen
Looking forward to this next installment, already of to a fantastic start.
Explaining the wick sizes has already helped me as i was never sure really there effect if any. Now i know the second candle lower wick must be longer than the first candle for it to be considered.
Hi Tymen1,
Great to see you back in the forum. In the engulfing pattern, a buy signal will occur on the lower Bollinger band and for a short signal the pattern will appear on the upper Bollinger band? Do we still apply the 5 mins chart as our entry point?
Yes, you have it correct here, and with the buy/sell signals on the BB as well.
The 5 min chart will be reversed because we are going long. You will see this in examples as we go along.