THE JOY OF CANDLESTICK TRADING - a Learning Experience

Beginner Questions
957

OK, its 1.00 am in the morning here, and this is my final post for tonight.

I have domestic issues at present so I will refrain from posting new material for 24 hours.
I still have to go thro that trade with some very interesting information.
[B]
I will do that first.[/B]

958

[B]@Tymen[/B] or anyone who is kind enough to answer my question.

When using the STARC method to find the retraces and exits, do we have to look at the BB’s? I read throughout the thread and it isn’t clear to me.

Another question, do you think it would be a good idea to use fibonacci to help with those retraces and such?

959

As described in the #811 post, there is no need of BB anymore when it is time to exit.

FXCaribbean
"Don’t go where there is a path. Open a new one and leave a trail".
If you want to understand what we’re talking about here (UMS) then read this and set your screen and computer that way. Also read the live thread, UML Live and UMS Live

960

Hi Tymen1 wow great thread I really regret that I didnt check it out sooner. I was on 4xstar’s fantastic thread
http://forums.babypips.com/gbpjpy/15356-gbp-jpy-winning-strategies.html

where in the beginning he mentions your thread so I figured I would check it out and only thing I can say is wow im hooked youve got some great ideas and concepts ive never thought of so again thank you so much for this truly awesome enlightening thread :slight_smile:

961

WOW, thank goodness I didn’t open a real account… I guess last night I forgot :confused: to close a open order in my demo account and well… I got a real but fake, thank goodness, margin call.:(:frowning:

Here is the email.

Exhibit A:

"Attention Valued Client:

The equity level in your account ######## has fallen below the margin required to
maintain your open positions. Any and all positions that were open to
market fluctuation have now been liquidated, pursuant to the Foreign
Exchange Brokerage Agreement.
Global Forex Trading
Division of Global Futures & Forex Ltd."

Well I�ve learned that lesson, and thank heavens I learned it with a fake demo account.

Again I wanted to thank Tymen for all the work he’s done. I’ve learned a lot but I am nowhere near opening a real account. - Exhibit A above.

Thanks :smiley:

962

:(:eek::confused: I would be horrified to wake up and see that. The value of demo!

So many people say go live right away? Even if it’s only 250 bucks they say. Well, I like 250 bucks and I won’t just throw it away, might as well just flush it instead.

963

I am confused on the entry point using tymen1 method. If we spotted a setup on the 20 mins to 35 mins charts, we will refer to a 5 mins keltner chart as our entry point. If we spotted a setup on the 40 mins to 50 mins charts, we will use a 10 mins charts as our entry point. For setup on 55 mins to 1 hrs chart, we will use a 20 mins charts keltner charts for our entry point? Can someone help to confirm that what i am writing is correct?:slight_smile:

964

Hi Ray_1,

If you read the #811 post, you will notice we should ALWAYS use the 5mn to get our entry point no matter which main timeframe the shape has been hunted in.

FXCaribbean
"Don’t go where there is a path. Open a new one and leave a trail".
If you want to understand what we’re talking about here (UMS) then read this and set your screen and computer that way. Also read the live thread, UML Live and UMS Live

965

To find an entry point use a chart that is 1/4 or 1/5 of the main chart. So for a 20, 25, 30, & 35 minute main chart then you a 5 minute chart to find the best entry. For 40, 45, 50, 55 & 1 hour main chart then use a 10 minute chart to find the entry. Hope that makes sense.

Again thank you Tymen.:D:D:D

966

[B]Many questions today[/B] so I will hold off on posting new material until these questions are anwered.

[U]It is important that confusion does not set in.[/U]

The BB are not really relevant here but if the price action does touch them as well as the starc bands, then this gives extra strength to the retrace.

Here again are the charts you need to detect retraces.
They are all you need.

[B]Going short[/B], eg evening star, dark cloud, short engulfing >>>


By tymen1 at 2008-07-01

[B]Going long[/B], eg 3 green soldiers, piercing pattern, long engulfing >>>


By tymen1 at 2008-07-24

967

Welcome to this thread, Johnnykanoo!! :slight_smile: :slight_smile:

I have seen your contributions in several places and you are welcome to contribute to this thread.

Thank you for the very kind compliments!!

I hope you can gain something from this thread. :slight_smile:

I thought that [B]4xstar [/B]was a she, but I stand to be corrected.

968

I agree with [B]VulcanClassic [/B]- I would be horrified to see that.

[U]Always remember to close everything once you have completed a trade[/U] :o

The thing to do now is to contact GFT and ask them to supply you with a new set of fake money to demo trade with. :smiley: :smiley:

If they will not do it, then close the account with them by uninstalling the program.

Google Kinetic Securities of Sydney (my broker) who are an introducing broker for GFT and Jay Pace will certainly give you a new demo.

If you wreck the demo again, he will give you more fake money!! :smiley:

969

[U]To be sure[/U], you can use one of two methods :

  1. Use a 5 minute chart.
  2. Use a chart that is 1/4 to 1/5 the timeframe of the main chart.

For charts of 20-35 minutes we use a 5 min chart.

For charts 40-1 hour we can choose a 5 min chart or 10 min chart. (I generally find the 5 min chart to be better).

For charts of 4 hour and daily, you could consider a 5 minute entry chart, but here the [U]proportions are very different[/U] and you are now probably better off going for a 45/50 min entry chart for 4 hour mainchart, and use a 4 hour entry chart for a daily mainchart.
In a daily main chart, a 5 minute entry chart really becomes ridiculous!! :frowning: :frowning:

970

[B]Thanks to all those who answered the questions that others asked.[/B]
That is excellent practise.
Answering questions helps you learn!! :slight_smile:

I have re-answered those questions, not to challenge the integrity of the posted answers but rather to just make sure the fine points were correct.

hopefully, now, these questions do not need to be asked again.

Clarity is important - we are dealing with money!! :wink:

971

:frowning: I wonder why it is not possible to set both Entry Point AND Stop Loss at the same time with a predefined range. There are so many things that can happen during this little time (electricity failure, earthquake, computer failure, UPS failure, screen, ISP down… and so on).

Edit :

Here is the answer from the live chat help of GFT

The Parent And Contingent (PNC) order type contains a Parent order and two Contingents. The parent order can be a Market, Stop, or Limit (typically used to enter a new position). The Contingents are a Stop and Limit, and are OCO by default. The contingent orders will be ignored until the Parent order fills (i.e., the parent order will fill before the contingent orders before working orders).

To place a PNC order in Dealbook 360: Click Trades -> New Order, and select the Parent and Contingent order type.

FXCaribbean
"Don’t go where there is a path. Open a new one and leave a trail".
If you want to understand what we’re talking about here (UMS) then read this and set your screen and computer that way. Also read the live thread, UML Live and UMS Live

972

Updated summary #811 with those last info. I also added a history section in the beginning of the post in order for the readers to know what has been modified.

FXCaribbean
"Don’t go where there is a path. Open a new one and leave a trail".
If you want to understand what we’re talking about here (UMS) then read this and set your screen and computer that way. Also read the live thread, UML Live and UMS Live

973

Hi Tymen,

I was wondering if there is any market condition that this system works best in. For example ranging or trending? I ask because in a strong trend, I’m hardpressed to find an entry by UMS, UML. It could just be me though.:confused:

I tried to ask a similar question back in post 110 but didn’t know how to ask I guess.

Thanks

Jeff

974

I thought that 4xstar was a she, but I stand to be corrected.

gosh tymen1 i just assumed 4xstar was a guy :slight_smile: I really don’t know for sure so please don’t let me correct you.

4xstar if your out there please I meant no disrespect.

975

I didnt want you to reveal anything you dont want to, sorry if it seemed so :wink:
I just wondered because i thought you wrote once that youre more profitable in stocks than you could be in forex because the Australian Stock Market is so juicy.
So your aim is to trade the forex for a living in the future? Is it because you started to figure out that trading forex with your Candlestick system is the best approach for a good income?
Do you already make notes about your Forex trades using this system? If so, do you have some statistics how many patterns you trade in your sessions, what their lost/won ratio and the risk/reward on average was (Just interested in the Pips, no need to reveal any financial things)? How much of your Equity do you risk in each trade?

Many questions, sorry about that :eek:

I cant look forward to start demotrade, but first i try to get as much as possible in my mind, your thread was so far the most valuable ressource for me, really great effort of you!

976

Hello Tymen,

First of all I want to say this is an incredible thread and I am learning a lot!

Thank you for your wonderful teaching style.

I understand the importance of the Starc bands for retracement but was wondering how much better these bands are over the Keltner?

I am using ProRealTime for charting and while they have a Starc indicator there is no adjustments for a factor setting. They do allow adjustments for period averages and ATR averages so I am not sure this is what I need. When experimenting with these settings the Starc bands are way different from the Keltner bands set at 4,1

Thanks,

H20Diver