THE JOY OF CANDLESTICK TRADING - a Learning Experience

Beginner Questions
1218

[B]Now to reply to a private message wherein the sender has blocked the replies, so I post the reply here with part of the message deleted.[/B]

Greetings [B]F X! [/B] :slight_smile: :slight_smile:

If you skip thro to page 115 post #1142 and read from there to page 116 post #1154 you will get the whole of the thread.

In these posts I explain fully my 4 levels of trading from Basic to Advanced and you can pick one of these.

A few posts further on from there you will find a post by the [B]Rumpled One.[/B]
He put the 4 levels in PDF format and there is a download hyperlink on his post.
He kindly did it for me because, since I am fairly new to computing, I had no idea how to do it.

Keep reading the rest of the thread but the essentials are in these posts above.

[B]FXCaribbean’s[/B] posts are important because he has hyperlinks in his posts that lead to all the important concepts explained in my thread.

Then [B]Cordite [/B]has made a full copy of the whole thread and you can download a copy from him. Just go to one of [B]FXCaribbean’s [/B]posts.

Finally, yes, candlesticks are definitely the most reliable way to go.

Regards, Tymen.

1219

Thanks Tymen. Another question, if you don’t mind, can I just use the standard Di Napoli MACD for LONG trades, but reverse its direction (if point up, consider it to be down, and vice versa)?

1220

Of course you can! :slight_smile: :slight_smile:

But just do not get confused and make a mistake!! :stuck_out_tongue:

1221

Hi Tymen,

Just wonder, when you trade, do you read the latest news that affect the world & take into consideration before you made any decision or you just based on the candlesticks chart??

Although you said before that Candlesticks give up to the second information whereas indicators only tell you things upon the close of a bar. Does it means that you just follows the chart by “Reading” the “Minds of the Trader in the world” what are they going to do in the next step??

Rgds

1222

I think I know what he will say, because he’s said it before;

He doesn’t check the news, news is built into the price action. If anything news gives your set up more power.

1223

Yep!! :smiley:

You got it!! :smiley: :smiley:

1224

Thanks tymen I will check those post out.Once again thanks for being such a big help to the babypip community

1225

Tymen,
Thanks for correcting my understanding. I thought that, since the Starc bands were going up, a good re-entry would be after it crosses the middle band. In the chart I posted, the price never goes down to the lower band.

I’m having some success just using Level 2 on the 4 hour charts (the one hour chart I posted is not my main chart). But I’m trying to progress to the higher Levels. Thanks for your help.

1226

You are doing well Condor!! :slight_smile: :slight_smile:

The choice of a 1 hour Starc chart for a 4 hour main chart is a good one.

The idea of showing the middle Starc band is only to use it a guide for where the price action is.

Now the entries and exits exactly are given according the the key diagram on page 115, post #1147 headed “[B][U]Common Procedures at all Levels[/U][/B]”…[B][U]Definition[/U][/B] : [U]Starc Band Retrace Point.[/U]

You may want to print this chart and keep it on hand.

In your 1 hour chart the Starc bands were [U]going up[/U] and, therefore, the entry price will never go down so far as to touch the lower Starc but rather come close to it.

This is clearly demonstrated in your chart.

As such, you could have got a better entry and made more pips!! :stuck_out_tongue:

Soldier on!! :slight_smile:

1227

Tymen, can I use the Starc bands instead of the Keltner channels for my initial entry? thanks again

1228

If you do not have access to the Keltner, I suppose you could the Starc bands in a pinch.

But they are different in their positioning on the chart - you may experience some difficulty.

However, it should be noted that in about 50% of entries, the Keltner does not provide a better entry over a standard entry on the open of the trading candle.

So if it was me that was stuck without access to the Keltner, I would simply do ordinary entries.

1229

Just now, as I type this post at 11.00 am Boston time (your time in USA) on Tuesday,6 September, there are a stack of Evening star patterns available for trading!! :slight_smile: :slight_smile: :slight_smile:

1230

WOW took 3 days for that post to appear in the thread:confused:

ah it is Tuesday 9th

1231

Sorry about that [B]Briwales[/B], that was an error in my typing. :o :o :o

Thanks for picking it up!! :slight_smile:

That was meant to say…

Right now at 11.00 am, Tuesday, 9 September, Boston time (USA) we have a stack of evening star trades going on the 4 majors!!

1232

Hi Tymen,

Sorry to pick you up on the date thing got me confused for a moment. Which do you class as the 4 Majors and what other pairs do you trade, I am trying to find which are best for me I trade on GMT+1.

Regards

Brian

1233

Ah-Ha! I get it! Thanks for clarifying.

1234

Thank you Sir!

I appreciate your time and more over, your willingness to share this strategy. People like you and TRO give hope to those who are trying to learn the art of trading in a successful way! I hope to get a good grasp of this and start to trade it.

I’d also like to thank the contributors of this thread. Your answers and “how to’s” to questions have been most helpful. The condensing of information is very useful to getting the core values, setups, and nuances of the strategy. Don’t stop!!

Pc&Blssngs, F X

Greetings [B]F X! [/B] :slight_smile: :slight_smile:

If you skip thro to page 115 post #1142 and read from there to page 116 post #1154 you will get the whole of the thread.

In these posts I explain fully my 4 levels of trading from Basic to Advanced and you can pick one of these.

A few posts further on from there you will find a post by the [B]Rumpled One.[/B]
He put the 4 levels in PDF format and there is a download hyperlink on his post.
He kindly did it for me because, since I am fairly new to computing, I had no idea how to do it.

Keep reading the rest of the thread but the essentials are in these posts above.

[B]FXCaribbean’s[/B] posts are important because he has hyperlinks in his posts that lead to all the important concepts explained in my thread.

Then [B]Cordite [/B]has made a full copy of the whole thread and you can download a copy from him. Just go to one of [B]FXCaribbean’s [/B]posts.

Finally, yes, candlesticks are definitely the most reliable way to go.

Regards, Tymen.[/QUOTE]

1235

A quick question,

For the advanced level, at what point are we acknowledging the trade has turned against us after we have reentered at a relevant starc point?

I ask, as a demo trade I was participating in yesterday turned against me after I entered and the price trend completely reversed. I manually exited at a loss of 24 pips, but if I had waited until my PCI stop loss the loss would have been huge.

I know that there is a manual 10 pip stop loss right after we entered the trade in the beginning, but nothing is mentioned about stop losses when we are just working the starc bands.

Many thanks.

Cord

1236

Hello, my first post here on Babypips is to thank Tymen and the whole lot of you, on a fun and and very informative week i’ve had reading this thread. Thanks all!!:smiley: ~i’m glad you chose the teaching method you did Tymen~

Yesterday was my first trading session with this system.I was pleased with what a bit a patience and a sound system can attain.

Here,here!!

1237

Thank you for your question Cordite!

[B]This requires a careful answer.[/B]

[U]Not until it hits the PCI.[/U]
We must allow room for a trade to retrace, to “breathe”.
We cannot guarantee that our relevant starc point entry is the very extreme.
It might be, but that is not always the case.

If we have not entered at the very extreme, then the trade will travel somewhat further extreme, giving us a temporary negative position.

How far further will the price action go against us?
We really do not know.
The Starc bands tell us that its not much further. (assuming you entered correctly).

But sometimes the whole thing goes wrong, and, yes, we lose.

I ask, as a demo trade I was participating in yesterday turned against me after I entered and the price trend completely reversed. I manually exited at a loss of 24 pips, but if I had waited until my PCI stop loss the loss would have been huge.

I too, took a demo trade yesterday and lost a heap of pips.
But then, I was experimenting with something.

You did the right thing here, I think.
If your instinct tells you that the trade is simply not going to return, then an exit immediately is good.

I lost a lot more pips than you did!! :o :o :o

I know that there is a manual 10 pip stop loss right after we entered the trade in the beginning, but nothing is mentioned about stop losses when we are just working the starc bands.

The reason for this is the need for that “breathing room”.
That is counterbalanced against the probability of hitting the PCI.
If we always entered at the starc extreme exactly, then a winning trade would be guaranteed.

If you think you can enter [U]close or at the starc extreme[/U], then it could be an idea to manually exit (with a loss) at say, 10 pips against you.

[U]The message is this[/U] : Reading the Starc is a skill !!

[B]Now I have good news for you - read the post below this one!![/B] :slight_smile: