THE JOY OF CANDLESTICK TRADING - a Learning Experience

tymen1 · September 10, 2008, 4:23am

[B]For those traders who are with GFT and using Dealbook, here is an improvement to the Starc bands, .[/B]

You can replace the Starc band with the improved [U]Extreme Starc band[/U].

[U]Here is how in 7 simple steps!![/U] :

Open a new file in your [B]My Documents[/B] section.
Name this file “Dealbook”
Open Chart Studio. (there will be an icon on your desktop)
Click [B]File[/B]…[B]New[/B]
Copy/paste the following into the blank page :

indicator Extreme_Starc_Bands;
input factor = 1;
draw line_mid(“Mid SB”), line_upper(“Upper SB”), line_lower(“Lower SB”);
vars tmp(series);
begin
line_mid := sma(close, 4);
tmp := factor * mma(truerange(), 15);
line_upper := line_mid + tmp;
line_lower := line_mid - tmp;
end.

Click [B]Build[/B]…[B]Install module[/B]
You will be prompted to [B]Save[/B]…select your newly set up [B]Dealbook [/B] folder.
In [B]File name[/B]…type [B]Extreme_Starc_Bands[/B]…[U]exactly[/U] as given here (complete with underscores and upper case capitals - the slightest error and it will not work)
Click [B]Save[/B]

A heap of writing underneath appears and should tell you that it has been done successfully.
(or unsuccessfully if you did something wrong!)

Now go back to your Dealbook charting program and [U]delete [/U]the Starc bands.

Open you indicator window and there you will find (in alphabetical order) the new indicator…Extreme Starc Bands.

Now set it up on your 5 minute chart.

You will find this new indicator to be much more reponsive to changes and is more likely to give you the extreme points.

Turtleboy · September 10, 2008, 6:39am

a nice Morning Star pattern for a nice early morning.

usd/chf-30min

tymen1 · September 10, 2008, 6:54am

Nice pattern there!!
I will look at it.

These patterns are best posted on the thread [U]UML Live[/U] specially set up for candlestick trading by [B]FXCaribbean[/B].

On the UML thread we discuss all the trades in detail!

This leaves this thread to be an educational one.

simplexX · September 10, 2008, 1:02pm

I’ve been reading through this thread for some time now, because I am currently looking for a trading system to go with and I really like the Candlestick-pattern approch here.

First of all I wanted to thank tymen and all the other contributors for this amazing work. You invested a tremendios amount of time and energy in this thread and I don’t really find any words on how to apprechiate this.

I am a decent programmer and have some knowledge in MQL4 and therefor I am trying to write an Expert Advisor for MT4 that executes this system. I am doing this to give something back to this community of truly amazing people.

However in order to do this, I would like to know what pattern are the most successful with this strategy and should therefor be implemented.
I didn’t find an exact statement on that in the thread (maybe I overread it) so it would be a lot of help to me if oneone with experience (maybe tymen himself ) could help me with that.

Another thing I wanted to ask is if Dealbook supports a similar feature that allows one to write Expert Advisors, just like MT4. If that is the case, I could also develop a version for Dealbook.

Thats all for now, I wish you all the best and keep up that excellent work.

VulcanClassic · September 10, 2008, 1:28pm

Hold on, here comes Ike.

I see you are on the edge of the projected cone so hopefully it steers clear of you. It missed us, we had a couple of days of wind and seaspray, but that was it.

mytwopips · September 10, 2008, 1:48pm

Yeah, I’m hoping it stays far enough south that we are only on the outer bands of the dirty end. At this point we are going to get that end of it.

I rode out Rita, and that is the last 4 or 5 I will ever ride out again.

So, I may have to pack up and head out if it gets too close.

tymen1 · September 11, 2008, 4:24am

Here in the northwest of Australia we also get the hurricanes every year.

We have a whole string of mining towns there and the houses are all purpose built bulletproof.

They can withstand a cyclone force 10 if there was such a thing.

Our building codes here in Oz are particularly stringent anyway.

So the people in our northwest ride out hurricanes year after year with no problems.
There are no evacuations.
Its just part of the job.

Going by what is happening to you, it will be interesting to see what our summer brings.

tymen1 · September 11, 2008, 4:36am

Greetings, [B]SimplexX[/B]

Welcome to this thread!

The patterns I use are :

[U]Long :[/U]
Three green soldiers
Long engulfing.
Piercing pattern.
[U]
Short :[/U]
Dark Cloud Cover.
Evening Star.
Short engulfing.

These are all reliable patterns.

Dealbook does indeed allow one to write programs.
They are written in the program called Chart Studio, which comes with the Dealbook program.
In the post above I wrote a small modification to the Starc bands, which are used in the Advanced level of trading which I have developed.

You ability as a programmer would be very much appreciated here.

An improvement to the Starc bands which would more clearly depict the extreme price points would be most welcome.

traderG · September 11, 2008, 4:46am

Hi Tymen, regarding the 6 patterns you mentioned below, I believe only the evening star and long engulfing were illustrated in this thread. Is it possible for you to do the same for the rest? Can we also apply UMS and UML for the rest on the bollinger band extremes? thanks

simplexX · September 11, 2008, 10:40am

Thank you for your answer.

Give me a few days to get myself used to chart studio and then I’m on it.

tymen1 · September 11, 2008, 1:30pm

UMS and UML application - yes!!
But the idea now is to pick one of the 4 levels of candlestick trading I have outlined and posted and use the one you pick.
They should bring you good success.

All but the 3 green soldiers are traded from the Bollinger bands.
The 3 green soldiers can be traded from anywhere.
They also have a counterpart - the 3 red crows. (red crows??? Hmmmm)

Yes, the other patterns have not been delt with yet.
But they are traded in exactly the same way as the others.

What has happened is that after I did all that work posting the 4 levels, I took a rest, now I have discovered that I am a little burnt out.

I will continue to post, but it will take a while before I get my full psychological energy back.

[B]Please make allowances for my age - I am a senior citizen, getting on in years, and am no spring chicken any more.[/B]

For this reason I am grateful for the support of [B]VulcanClassic[/B], [B]FXCaribbean[/B] with the indexing and setting up the UML and UMS threads, [B]Cordite[/B] with setting up the whole thread for printing, the [B]Rumpled One[/B] with his work on the PDF file, and hopefully now, assistance from [B]SimplexX [/B]with some programming.

tymen1 · September 11, 2008, 1:41pm

Your help would be most appreciated [B]SimplexX[/B]!!

I know that trying to find the high and low points in a chart is asking for the impossible.
Bottom and top fishing are generally discouraged.

At present the closest I can get to this is with the Starc bands on 5 minute charts.

So this work needs to be done specifically for 5 minute charts and does not necessarily need to use Starc bands, but I submit that they are a good starting point.

VulcanClassic · September 11, 2008, 3:29pm

Looks like we’ve got a dream team started.

Nice.

jpang · September 11, 2008, 11:12pm

Hi Tymen and everybody else on this thread. Sorry to add useless content but I just wanted to thank you all (especially Tymen) for this thread. I’ve read all the posts so far and its really usefull for a newbie like me

tymen1 · September 12, 2008, 8:01am

Go for it [B]Deevz[/B]!!
This is great news.

We still need to work on that Starc band though - getting the extremes correct is very important in the Advanced level.

I shall see what I can do in the meantime.

Thanks for your continuing support [B]Vulcan[/B]!

tymen1 · September 12, 2008, 8:05am

Welcome to this thread [B]Jpang[/B]!!

Your post here is not useless.

Great to know that you are getting something out of this material.
Trust you will go on to make many pips!!

simplexX · September 12, 2008, 9:55am

Hi.
Coincidently I also have a prototype version of the system including entrys based on MACD and KC. The only thing i need to add are exits.

Unfortunately I do not have MSN but we could exchange emails.

I also looked at chart studio and my first impression is that it is really comfortable to work with. I am now trying to improve the starc bannds like tymen suggested it.

I have a problem adding the Extreme_Starc_Bands indicator to a chart.
I did everything tymen explained, but the Bands appear in a seperate area below the chart (like the MACD).
Does anybody know how to correct this?

briwales · September 12, 2008, 11:21am

Hi SimplexX

When putting in a new Indicator a box comes up and down the bottom there is a tick box for adding it to a new subgraph untick that box and it should then be added to the main chart.

Regards

simplexX · September 12, 2008, 11:26am

Thanks for the quick help

Deevz · September 12, 2008, 5:36pm

Keep in mind that I am not coding for Dealbook, but for MT4, which I believe to be better than the former. Metaeditor is a [B]very powerful tool[/B], and coding for MT4 has the advantage of broker portability. Beside, using a large number of timeframes to find the patterns isn’t necessary with an indicator which detects them automatically.

I only code in C++/C# anyway, which is very similar in syntax to MQL4!