THE JOY OF CANDLESTICK TRADING - a Learning Experience

Beginner Questions
1259

Looking at the Extreme_Starc_Bands I think that they already capture the price extremes pretty well.
However I tried to improve it and experimented with a few things.
I cannot really tell if my work is really better than the Extreme_Starc_Bands so I will just post it here and ask you for your opinion.

File lkmma.ctl:

function lkmma;
input s1(series), s2(series), s3(series), s4(series), w1(number), w2(number), w3(number), w4(number), period(number);
result res(series);
vars i(number), tmp(series);
begin
for i := front(s1) to back(s1) do begin
tmp[i] := w1s1[i] + w2s2[i] + w3s3[i] + w4s4[i];
end;
res := mma(tmp, period);
end.

File Modified_Starc_Bands.ctl:

indicator Modified_Starc_Bands;
input factor = 0.9;
draw line_upper(“Upper MSB”), line_lower(“Lower MSB”);
vars up(series), lo(series), i(number);
begin
for i := front(open) to back(open) do begin
up[i] := max(open[i], close[i]);
lo[i] := min(open[i], close[i]);
end;

line_upper := lkmma(high, up, lo, low, 0.5, 0.5, 0, 0, 4) + factormma(truerange(), 4);
line_lower := lkmma(high, up, lo, low, 0, 0, 0.5, 0.5, 4) - factormma(truerange(), 4);
end.

Create and install these files in the order I posted them in Chart Studio (just like tymen explained).
It could be that this is worse than the Extreme_Starc_Bands, but I would like to know if my concept has potential.

I will now concentrate to write an EA for the advanced strategy.
This should help to make a good decision which indicators are better for use.

1260

Phew, just finished the thread, copied and pasted on word for easier reference on my Pc. I always believed and had demotraded candlesticks before now as one of ‘the systems’ but your teaching has had the effect on stamping for good the candlestick patterns on my mind. Your analysis and detailed explanations on the use of KC and STARC Bands for more accurate entries and exits are plainly excellent. Permit me to say this, you are a great teacher, and you demonstrate your generosity with a deep sense of humility.

Hmm…what can I say, I am VERY grateful to all the contributors to this thread and especially to Tymen, VulcanClassic and FxCaribbean. I am in this for the long haul.:slight_smile:

I am also greatful to the owners of Babypips.com for providing this platform, you might not be aware, there are benefits here that transcends learning how to trade fx. I believe there are many silent ones who are just as grateful. Thank you. I am continually amazed at the generosity of people I received every where, my only prayer is to be a blessing to many as many have been in my life.

Now, a question, Would anyone be familar with Fx AccuCharts (Fx Solutions charting platform)? the default settings for the starc bands are: Period1 = 6, Period2 = 30, Shift = 0. It turns out differently when applied as compared to the presentations on Dealbook or is it my lack of proper understanding? I appreciate anyone who knows to answer because I like Fx AccuCharts. Otherwise, I would have to open an account with with Kinetic Securites because of Dealbook.

many thanks again,
king.

1261

King,
I have both DealBook and AccuCharts. The settings on FXCaribbean’s summary page didn’t quite make AccuCharts’ Starc bands the same as on DealBook. I set the multiple to 1 (rather than 2) and they look the same now. Here are the settings:

Period1 = 6, Period2 = 15, shift = 0, mult1 = 1, mult2 = -1

1262

I found a FREE STARC BANDS MT4 INDICATOR.

FREE MT4 INDICATORS HERE

NEVER LOSE AGAIN!!

NeverLoseAgain.zip (138 KB)

1263

[B]CANDLE PATTERNS IS AKIN TO READING TEA LEAVES[/B]

I post this here not to rip Tymen, but rather to make new traders aware that this method, which appears simple, is not a Holy Grail, but is a strategy that can bite you on the (O). You look at one time frame and see one pattern. You look at a different time frame and the pattern is different? WHICH WAY TO TRADE?

It has, therefore, all the advantages and defects that go with that approach.

There is nothing new under the sun.

[B]REMEMBER, PRICE IS THE SAME ON ALL TIME FRAMES.[/B]

NEVER LOSE AGAIN!!

1264

Hey TRO buddy, you’re really obnoxious. Does anyone ever tell you that?

Whether you are a good trader or not, you are not larger than life and you have no right to prance around the forums crapping on every thread that you think you can work your sales pitch into. Yeah, your posts read like sales pitches.

Tymen’s got nothing to gain here, he’s just doing it to help people. While you can make money by recruiting people away from “FIXED SPREAD BANDITS”, and then getting them to trade, bringing in the commission dollars to your pocket.

We’re not stupid, and you’re not a God. Shape up or ship out with your elitist attitude

1265

And of course i know that. I’ve done my homework.

1266

Did you happen to see THIS POST by Tymen in my thread? Anything look familiar? Turn about is fair play.

You’re entitled to your opinion. Did it feel good posting your insults?

I don’t have a sales pitch.

I never called anyone stupid nor did I claim to be a deity.

My attitude is one of helping fellow traders by sharing knowledge and my programming skills. Did you happen to see how many THANK YOUs I have received on BabyPips? I don’t think that would have happened if what you posted about me were true.

Did you happen to see that I turned Tymen’s 4 Levels of Candlesticks into a PDF and uploaded it so all may benefit for FREE? Did you see Tymen thanked me for doing that? Did you see that I posted a FREE MT4 STARC BANDS indicator? Where’s the SALES PITCH?

This is a PUBLIC FORUM. So you have a right to post and so do I. But we also have a RESPONSIBILITY to our fellow traders. I think you crossed the line with your post.

FREE MT4 INDICATORS HERE

NEVER LOSE AGAIN!!

1267

Our thoughts and prayers are with MyTwoPips - hope your house is still there after IKE. Man that sucks. I’ve got a friend with a house in Galveston, and I have my doubts about that one.

1268

Yeah. Vulcan and i know about that kind of stuff.

Tymen never ever send links to his thread !!

But either you know how to live with people either you’re egocentric and just take care of you poor people… It is anyway hard to model one if he never ever received the minimum of education. You have to make him learn all the basics and unfortunately this thread isn’t for that…

Then I think we will have to digest … let’s see how long.

1269

Many thanks Candor. would demotrade to get the hang of it. wish all successful trading.
king.

1270

Sorry late post - domestic issues - helping people with no money.

My thoughts are also with Mytwopips and where he is at. :eek:
Of course he has not posted lately because of the cyclone.

This matter is more important than issues with the Rumpled One right now.
(I will answer that tomorrow).

To [B]SimplexX [/B]:

Fantastic work!! :slight_smile: :slight_smile:
I will try your programming out as soon as I can.
And I will give you back all the feedback you need. :slight_smile:

1271

Wow, I’ve spent the last three days pouring over this post. It was just the first one I came to after tumbling through the babypips school, and MAN what a ride.

I’m so happy I found this place with all these wonderful people who want to teach and learn.

A big applause to tymen… I can’t imagine the amount of time and effort he’s put into this thread. :smiley:

1272

No, I don’t think [B]Akeakamai [/B]crossed the line!!

I am sure he has been watching this thread for a long time because the very first post after my introduction to this thread on page 1, was from [B]Akeakamai[/B].

We are all [U]very aware [/U]that you are trying to advertise your ECN broker, MB Trading - there is no use trying to hide it.

However, in case you feel insulted, let me answer your statements :

CANDLE PATTERNS IS AKIN TO READING TEA LEAVES

Absolutely correct!!

But let me have a light play on words :

There is no future in reading tea leaves!! :stuck_out_tongue:
There is great potential profit in reading candlestick patterns!! :smiley:

You look at one time frame and see one pattern. You look at a different time frame and the pattern is different? WHICH WAY TO TRADE?

I have answered this question before.
The answer is simple.
You trade the timeframe where you recognise the pattern!! :stuck_out_tongue:

… not to rip Tymen, but rather to make new traders aware that this method, which appears simple, is not a Holy Grail, …

It has, therefore, all the advantages and defects that go with that approach.

Advantages of candlestick trading…I posted 12 very powerful advantages in the [B]4 Levels of Trading.[/B]

Disadvantages…

  1. You have to learn the patterns.
  2. You must wait for a pattern to appear before commencing a trade.

REMEMBER, PRICE IS THE SAME ON ALL TIME FRAMES.

Yes, and…er…what is the point you are trying to make?? :confused:

[U]In summary :[/U]

The candlestick methods herein are complete :

There is a candlestick strategy properly worked out.
There is money management via…
a) Stop losses.
b) Win/loss ratios with multiple amount or starc band strategies.
c) Risk/reward ratios.
There is credibility.

1273

Thank you [B]Akeakamai [/B]and [B]SimplexX [/B]for supporting me. :slight_smile: :slight_smile:

I do get the distinct impression that The Rumpled Ones’s strategy, as well as showing signs of being incomplete, is specially geared towards trading only with MB Trading and no other broker.

And MB Trading is the broker he is advertising.

I personally do not care which broker you use for candlesticks - it is your business!! :smiley:

1274

You know…I think there’s a lot of people that say “It doesn’t matter which diet you’re on, what matters is that you’re on a diet and you stick to it. That will make you successful in weight loss”.

I’ve only been learning a short time, but it seems to me so far is that the same thing applies to trading. It doesn’t matter which strategy you use, what matters is that you’re USING ONE and you STICK TO IT.

Of course, everyone has a good reason why their “diet” is better than someone else’s “diet”, but the real truth is that not every “diet” will work for every person, because everyone is different.

So I really don’t see the use of trying to argue against someone else’s method unless that method is based in pure insanity.

1275

[B][U]Improvement Pending for the 4 Levels of Candlestick Trading.[/U][/B]

Anyone looking thro the Intermediate and Advanced levels will probably come to the same conclusion that I have come to…[U]that they still appear to be just too complex to work with.[/U]

Just a look at the diagrams can produce a sigh…cannot this be simpler??

So I intend to get dinkum (Aussie term) with these levels!! :wink:
When finished they will be very simple indeed!!

The [U]good news is[/U]…that I have already completed most of the simplification work!! :slight_smile:
Preparing the diagrams and adding the final touches still needs to be done.

[U][B]What is new?[/B][/U]

[U]Firstly, I cannot really simplify the Basic level any further.[/U]

This level is a straight entry using a multiple amount strategy to increase the win/loss ratio from 40/60 to 60/40.
The PCI stop loss is properly set and retracements are unavoidable regardless of timeframe used.
Therefore, at the Basic level, a retracement hitting the PCI can produce a loss trade that can be fairly substantial.

With [U]take profits[/U] set at either middle Bollinger or opposite Bollinger, the risk/reward ratio is basically set and cannot be improved upon.

[U]The Intermediate/Advanced levels will see major improvements, however!![/U] :slight_smile:

The entry will be [U]delayed [/U]until the extreme starc point is reached.
Trades will then take place from here.
I have noticed that the real action only really starts from this point.
All the trading before this point is really just a waste of time…

Pips first - OK you make money, but only a small amount.
Retrace first - you lose money!!
These senarios will be eliminated.

This allows another elimination - the Keltner channels!! :slight_smile:
These will be done away with!!
Wow!!
What a relief!!
No screen needed just for Keltner channels!!

The risk/reward ratio will be improved upon…

Because the starc extreme points are much closer to the PCI stop loss than the standard entry, price action going on to hit the PCI will only travel a few pips, and hence a loss trade will consist of only a few pips lost.

The Starc bands are being re-arranged with either the Extreme_Starc_Band indicator or the new one by [B]SimplexX[/B].
The Starc bands will only be either up or down - the new settings do not allow for level. Here is a simplification.
A profound improvement will be made on extreme Starc band entries (already worked out and set up!).
A powerful improvement will also be made to Starc band exits.

[B]I personally look forward to these improvements.
It is what I have been wanting for a while now.

These improvements should pretty well be the final work.
I think further improvements would only be very minor.[/B]

1276

Yeah, can’t wait to see the results! :):):slight_smile:

If there is anything I can help you with, please let me know.

1277

Hope TheRumpledOne can improve on his posting and continue to keep this thread as what it is.

Happy to see that tymen1 keeps on improving his candlestick trading to keep it simplified for everyone else. Now I am on the verge of combining everything I learnt from this forum and together with what I know to develop my own trading system. But I will continue to stay here and hope to learn more from tymen1.:slight_smile:

1278

Thank you [B]SimplexX[/B]!! :slight_smile: :slight_smile:

I copy/pasted your 2 formulas on the one file(page) so it is continuous - I trust that is correct - It loaded successfully.

I have been helping a family in crisis with no money today.
Then straight after I went to a funeral.
So now I am a little tired.

I will test your indicator very carefully tomorrow and take notes.
Then I shall post feedback.

I take this opportunity now to welcome [B]King [/B]and [B]Pips4breakfast [/B]to this thread. :slight_smile: :slight_smile:
I trust that both of you will enjoy the improved levels to come and make many pips in doing so.

Please be aware that FX Caribbean has set up the UMS and UML threads for posting charts and questions about individual trades.
Many posters, including myself, visit those threads, regularly.

That then leaves this thread clear for teaching purposes.