Tymen, this is very timely advice that all should heed. The setting of stops and when to move them is indeed a skill of its own. Congratualtions on your elevation to the highest level of recognition. Well deserved. I continue to enjoy your very high quality contributions
A whole skill of its own!
Wow.
I never thought of it that way, but you are right! 
It takes quite a bit of learning to avoid mistakes with stop losses.
Thank you for the very kind compliments.
I shall do my best to please.
Tymen is doing his best to develop for us a comprehensive approach to tradingā¦ very time consumingā¦ but there is going to be a great number of people benefiting from it long term
[B]Have you ever flown a radio controlled model aircraft?[/B]
Probably not.
Today, I visited a hobby shop just down the street and enquired about radio control planes for beginners. Besides being shown a suitable plane, I was also asked to fly a plane on a computer monitor.
So being full of enthusiasm, I opened the throttle on the controls and the plane went off the runway into the grass ļæ½ crash!
[U]Reset[/U] ļæ½ another plane on the runway!! 
After several tries, I managed to get control of the steering and the plane took off into the air. A quick nosedive and crash, one plane into many pieces.
[U]Reset[/U] ļæ½ instant repair!!
Another nosedive!
After about 10 nosedives, I was able to keep the plane in the air for longer ļæ½ not that I was in any control of it. The plane was doing its own thing, and I, the pilot, was just hanging on!
So the smashes kept coming, this time from on high. The computer graphics were excellent ļæ½ you saw your plane smash into many pieces.
A lot of money down the drain every time!!
That is, if it was for real.
What an amazing program!
I certainly needed a lot more practice to become a pilot who could actually control the plane, let alone be able to fly it to a destination! :eek:
[B]The same is true for forex.[/B]
The new trader has all these controls, entry, stop loss, timeframes, pip movement etc, and no ability to use them.
So the new trader will crash every time, that is, loss of many pips. Forget about a stop loss ļæ½ that is still too advanced for this trader.
Lucky it is demo trading, just like the computer flying simulator.
After a while, the trader gets to hang on and ļæ½flyļæ½ a trade. He has no real control and does not know where the trade is going.
He does not control the trade ļæ½ the trade flies itself, and the trader, the ļæ½pilotļæ½, hangs on.
It takes time to control a trade, to enter properly (take off), to monitor the trade right (fly the plane), to not take a loss (crash), to have control and determine the direction of the trade, (fly the plane to a destination), and finally to obtain a profit (safe landing).
[B]Next post.[/B]
[B]In candlestick trading, there are traders at many levels of skill.[/B]
Some are beginners, they need simple guidance.
Others are advanced in their understanding, they can do complex trading.
In order to simplify the candlestick trading and make it presentable to everyone, I have capitalized on my simulator flying experience.
After some careful thinking, I have decided to develop 4 levels of the [B]UM[/B].
Each one of these levels is directed at a trader of a particular level of skill.
The first level is the [B]Scalp [/B]trade.
Here, a new trader can get their feet wet and gain the confidence that candlestick trading so readily gives.
Efficiency is about 6-10%
The second level is the [B]Basic [/B]trade.
Here a simple multiple amount format is used with no KC entries and no need for Starc bands. Many traders will feel confident with this level because of its simplicity and ease of use.
The great drawback is that it operates at only about 30% efficiency at best.
The third level is the [B]Intermediate [/B]trade.
Here we build on the basic level by adding certain features.
I am not yet sure exactly what to add yet but they could be KC or retrace with Starc bands.
I will use my teaching skills to graduate this level carefully.
We increase our eficiency to above 40%.
The fourth level is the [B]Advanced [/B]trade.
Here we use all the features depicted in the candlestick thread but in a simplified way.
Efficiency is 100%.
However, [U]in all the levels[/U], there will be some exciting modifications which will make entries, exits and using stop losses[U] a very simple thing[/U]. This should be pleasing to all.
There will be basically 2 operations you will use in working your trades.
Thatļæ½s right, no more than 2!!
They are :
- Use of the Direct Deal (or market) order. This operation should be common to all broker platforms.
- Use of your eyes!!
You will be using very special methods to do entries, lock in profits, set stop losses.
The method here is radical and a major breakthrough in simplification.
[B]The development is well and truly underway and should be posted soon.[/B]
Tymen,
I really like that analogy. It just so happens that I work in aviation. Real world pilots use simulators as well for new type ratings. Initial training is a little different though, you get in an actual airplane with an instructor, kind of like what youāre doing here:) Keep up the good work!
Are you going to get your pilots license?
Sorry, no license for me. 
I get so airsick in a small aeroplane that I nearly black out.
My friend, the pilot, was also a doctor, and he recognised the symptoms immediately and landed the plane.
This happened to me several times.
In the end, I had to call it quits.
I was very fortunate to have him as a pilot.
Full sized passenger aircraft are no problem for me though!!
tymen1, you make me looking forwards to the new UM method. So we must master from the first level?
Hi
This is good learning.I trade daily chart.Basically I am a swing trader who am in the market for two to three days.However in scalping and day trading , in fact I was doing it in the beginning , using candlestick charts the noice is too much.You tend to overtrade. In my case was overtrading. In my short and small experience I have felt the candlesticks below hourly time is not effective.Of course there may be a lot of people scalping,day trading using candlestiks succesfully.I also use my tape reading skills, if at all any ,to trigger in to the trade because price action is very important in short term and intermediate trading.
Good trading to all.
Muraleedharan
Tymen is a scalper in real life. and has developed this technique for us to use in the lower time framesā¦ and is doing a fantastic job in that area.
This is a super threadā¦!
Dear Tymen
A quick questionā¦am about to start live tradingā¦but i have a problemā¦i will use cmsfxā¦but wondering, they hav a lousy platformā¦can i use a different platform and still use the broker you needā¦? if yes, how do i do soā¦? also wats the best brokerā¦reliable and nonfraudā¦? thanks alotā¦mydiggz
Hi tiffanys,
Welcome to babypips,
You may want to start a new thread for that question as this is a thread about a specific system.
That way you will probably receive more responses as well.
Welcome to this forum and welcome especially to this thread!!
Thank you also [B]VulcanClassic [/B]for answering the question objectively.
-because I am just a little biased! :o
If you wish to do serious candlestick trading as fully outlined in this thread then I would recommend either GFT Dealbook or FxSolutions.
I personally use Dealbook (it is the best, I am sure).
And I think most of my disciples do also!!
If you should choose GFT Dealbook then contact Jay Pace on Kinetic Securities in Sydney, Australia (just google it). Phone him or email, and tell him Tymen sent you!
The service is excellent.
I do not get any rewards for this referral.
I take it you are in America, and your money stays in America in your local branch of Morgan Chase bank.
The web address is Kinetic Securities.com.au/frontend/display
The reason for the referral is that Kinetic gives you the [U]demo version [/U][U]indefinitely [/U]wheras GFT direct gives you the demo for only 30 days. (of course, you are expected to open a live account in due course!)
[B]I have been doing an amount of statistical analysis of the methods described in this thread.[/B]
[U]I have come to the conclusion that :[/U]
- I am definitely on the right track with presentation.
- Simplifying the UM into 4 different levels is exactly the correct thing to do.
- Simplifying several of the operations is essential for a fast moving market.
I have found that the 2nd form of multiple amount trading introduced in this thread is too complex to execute and will, therefore, be deleted.
The 1st multiple amount method will be retained, but its entry method simplified.
Entries and stop losses will no longer be using the limit and stop orders approach. They are simply too slow in this fast moving market.
The new approach is nearly ready.
I have found that the multiple amount method is no match against the Starc bands approach.
Using the Starc bands makes a lot of pips.
The multiple amount method is only about 30-40% as efficient.
I have decided that the [B]Basic [/B]method will use the multiple amount approach.
With this method, there will be no need for 5 minute starc band charts or the 5 minute KC charts.
This level will only need to use the main charts.
It will be easy to use but will make considerably fewer pips than the [B]Advanced [/B]method.
I think that I will include the Starc bands charts in the [B]Intermediate [/B]method.
A big jump in pips gain will be experienced but the Keltner bands will be left for the [B]Advanced [/B]level.
Keltner band entries give a good pip advantage in about 50% of the patterns you trade.
Further progress has also been made on the development of very rapid and precise entries and exits.
The stop loss saga has been totally simplified and is now a traders dream.
[U]The whole emphasis on the 4 levels I propose is simplicity.[/U]
Not only in the [B]Basic [/B]level but also in the [B]Advanced [/B]level.
Progress is rapid and the results should be out there soon.
[B]
I will keep you posted.[/B]
Hey thereā¦
First off, I just want to say a huge thankyou to Tymen, and to everyone else who has been contributing. This is a fascinating thread, and Iāve enjoyed reading every post (over the last week, phew!).
I have copied every tymen post and chart, together with a limited number of questions/answers from others into a 140 page long word document which I printed out and have in hard copy to read at my leisure - made my life a lot easier!
If anyone else would like a copy of this, and if Tymen permits, Iāll upload it to a file sharing server and link to it here.
I have a quick question though, if I may?
I notice your MACD looks different to mine, in that itās alot bigger in the subchart it occupies and also has less lines than my default one. I am using the latest version of dealbook360. I can view/hide things like MACD green hgm, MACD red hgm, MACD sig etcā¦ Which is the actual line I am supposed to be using for my entries? Ill hide the rest to make life easier!
Thanks again!
Cord
Iād love a copy of that (on the o.k. from tymen of course), as I was going to start doing this myself.
Wow!!
I guess you are up for a brand new printer now!!
Is there any ink left in your local printer shop supplier?
If anyone else would like a copy of this, and if Tymen permits, Iāll upload it to a file sharing server and link to it here.
No worries, go ahead!
ā¦ I am using the latest version of dealbook360. ā¦ Which is the actual line I am supposed to be using for my entries? Ill hide the rest to make life easier!
It is the MACD line, you can hide the signal and histogram since they are not needed.
The red Di Napoli MACD is used for short entries.
Shortā¦is going down and red candles are going down too, so thats why I chose red for this MACD.
The green Di Napoli MACD is used for long entries.
Longā¦is going up and green candles are going up too, so thats why I chose green for this MACD.
The red MACD is the standard.
The green one is the inverse.
(checked = correct).
Go ahead Fort!..assuming it becomes available.
My stuff is deliberately not copyright so that all can use it!
I will only get very upset if someone tries to sell the material for monetary gain.
I have omitted one thing to say about the development of the 4 UMās - they will be user friendly!!
Hi
Tymen together with others is making this thread informative, this learning experience unique.
Good trading for all.
muraleedharan:):)